It seems Morgan Stanely was right when they said "the debt ceiling worries us most," as today's 3-month T-Bill auction surprised the market with its highest yield since the fall of 2008, as investors continue to price concerns that the U.S. government will exhaust its borrowing authority around mid-October.
As SMRA details:
Prompted by growing interest among the hedge fund community, Goldman is dedicating increasingly more "bandwidth" to covering bitcoin, and judging by the bank's bullish bias, most of the "smart money" appears to be long the cryptocurrency.
On the same day that Greek PM Alexis Tsipras triumphantly announced to The Guardian that "The worst is clearly behind us", Greece just as triumphantly announced that its long-rumored bond issue, the first after a three year hiatus which saw its last bond issue crash then surge, is now a reality. Just like in 2014, Greece is looking to sell another batch of five-year bonds, according to an Athens Stock Exchange filing. The bonds will be sold in benchmark size via a legion of banks, and are expected to price on Tuesday.
Janet Yellen has confirmed that the ($USD) is going to collapse.
I don’t mean a systemic, going to zero, collapse (though one day the $USD, like all fiat currencies will fail). I mean that the $USD is going to drop hard in the coming 18+ months.
How hard?
I believe we’ll see the $USD in the 80s sometime in 2018. That’s a full 11%-13% lower from where the $USD is today. Put simply, the entire move in the greenback that was driven by the Fed ending QE will be unwound.
How do we know this?
In a project dubbed 'Bowline', Bloomberg reports that Deutsche Bank may shift about 300 billion euros ($350 billion) from the balance sheet of its U.K. entity to Frankfurt as client trading and assets migrate to the continent following Britain’s decision to leave the European Union. While not the first bank to threaten to move post-Brexit, the scale of asset movement is the largest yet.