Following the surprising swoon in the Treasury complex which overnight slid lower following the German Bunds lower, only to rebound after Naimi sent oil sliding, it was not clear how big demand would be for today's $26 billion auction in 2 Year paper. Moments ago we got the answer, and it was "solid", with the high yield printing at 0.752%, pricing through the 0.763% When Issued by 1.1 bps, and the lowest yield since September 2015.
Submitted by Eugen von Bohm-Bawerk via Bawerk.net,
Italy is big enough to matter (it is the eight largest economy on the planet), but so uneventful that most does not pay any attention to what is going on there. We contend that Italy will, during the next year or two, be on everyone’s radar screen as it has the potential to derail the European project for real.
Yesterday, we reported that at least one prominent money manager, Geneva Swiss Bank, had called "time" on the bear market rally, and after scooping up a 7% profit following the post-February 11 short squeeze, cashed out.
This followed another post of ours from yesterday morning, in which we showed quite vividly that while stocks are surging on the latest algo-driven stop hunt and CTA squeeze, bonds could care less.
Usually, when TBTFs get caught doing something either illegal or just plain stupid, no actual humans are penalized.
What typically happens is there’s a yearslong investigation during which the handful of regulators and politicians whose palms weren’t thoroughly greased demand that the regulators and politicians whose pockets were properly lined do something to show the public that the government isn’t entirely beholden to the cabal of bankers that effectively run the world.
Bond yields have plunged, stock gains have been erased, and Gold and VIX is on the rise again as Al-Naimi dashes the hopes once again that Oil has found a bottom...
Oil is tumbling...
And that means US equities are falling...
And the earlier Treasury panic-selling has been entirely erased...