If yesterday's 3Y auction was impressive, and stopped well through the When Issued (as hinted by the negative repo rate), today's 10Y was an absolute blockbuster, stopping a whopping 2 bps through the 1.73% When Issued - the biggest stop through since September 2013 - on a yield of 1.71%, the lowest yield since December 2012.
Bonds continue to buy the bounce in stocks less and less...
And Yen carry is collapsing after its 2-day intervention bounce...
Charts: Bloomberg
Following Genscape and API's 1.4mm barrel build estimates at Cushing, DOE confirmed a 1.52mm build. However, API's 3.45mm build overnight was shockingly opposed by DOE's 3.41mm inventory draw - the 3rd biggest weekly draw of the year (as we suspect Canadian issues are impacting levels). Gasoline also saw an unexpected draw and Distillates drew down. Following last week's big production drop (Alaska), US crude production fell once again - for the 16th week in a row.
During the months of March and April of 2016 we released a series of proprietary research reports indicating signficant weakneses that we found in the European banking system and released it for sale through the blockchain (reference The First Bank Likely to Fall in the Great European Banking Crisis).