Business

Yesterday's strong 3Y auction was a harbinger. Despite the relentless risk on rally, moments ago the US Treasury had no problems to sell $20 billion in 10 Year paper which priced at a high yield of 1.765% (98.5% allotted), stopping through 1.6 bps through the 1.781% When Issued, the biggest gap since last spring, and well below March's 1.895%.

The bid to cover jumped from last month's 2.49, rising to 2.75, well above the 6 month average, and the highest since January.

At the start of the month we focused on what is set to soon be the new buzzword in economic circles: staglation. Specifically, we referred to the the explicit and inverse correlation between corporate profits and employee wages.

Via NorthmanTrader.com,

Following today's triple whammy of economic misses, in which first retail sales both declined and missed expectations, and then both business inventories and sales declined and missed from downward revised numbers, AtlantaFed watchers were certain that the keeper of the GDP Nowcast would cut its GDP estimate from 0.1% to zero or even negative.

Atlanta Fed set to go negative on Q1 GDP unless inventories soar

— zerohedge (@zerohedge) April 13, 2016

Tuesday oil humor extends to Wednesday as WTI Crude algos key off yet another Doha headline and spike stops above yesterday's highs.

Recall what we, jokingly, said several days ago - all it takes to push oil higher is for the word "Doha" to appear in an OPEC related headline.

This is the headline that pushed oil higher: ECUADOR SAYS GLOBAL OIL PRODUCERS WON'T DISCUSS CUTS AT DOHAalgos just looking for "Doha" now

— zerohedge (@zerohedge) April 8, 2016