Business

There are two distinct parts to the latest, just released research note from JPM's quant "wizard" Marko Kolanovic.

A key index of housing stocks has finally made it back to the highs of last decade’s bubble.

In a repeat of what she said almost exactly one year ago, when Senator Elizabeth Warren told then-Wells Fargo CEO Stumpf "You should resign, you should be criminally investigated" - not long before Stumpf indeed resigned, moments ago the kangaroo court was back in session and Warren doubled down her attack on Stumpf's replacement, Wells CEO Tim Sloan, blasting that he should be fired as he was part of a culture that pushed the bank to create millions of fake accounts for customers without their knowledge.

Having noted earlier the 44%, or 11-year high, in short Treasury positions among all bond traders (according to the latest JPM client survey), and a record high 70% among JPM's "active" clients, we suggested that the most likely next move in the Treasury sector is a squeeze on even the faintest news that derails the recent hawkish narrative. And, predictably if aonly for now, this morning Treasuries have ground higher, with 10-year note futures matching Asia session highs, and the yield on the 10Y sliding to session lows of 2.33%.

What about the catalyst?

"One Year Later" is the title of the hearing that Wells Fargo CEO Tim Sloan faces this morning with the Committee on Banking, Housing, & Urban Affairs.

A year after former CEO John Stumpf was grilled by lawmakers over the bank’s massive scandal over fake accounts, Sloan will tell the panel he is “deeply sorry” for the scandal but also that Wells “is a better bank today than it was a year ago,” according to prepared remarks.