Business

During this morning's bond rout when a poor French auction sparked a high-volume selloff in German Bunds which also hit Japanese JGBs before slamming US TSYs, Goldman said that "with 10Y JGBs closing at 0.095 and getting hit at 10bp intraday, focus will be on how the BOJ will react tomorrow [i.e. now]. Opinions seem pretty split with some expecting an increase in purchase size in the 5-10 bucket, while others feel that the BOJ will let the 10Y run loose given the current sell off is more fundamental than event driven.

After a poor March jobs report, followed by an April scorcher, then another debacle in May, the June payrolls report due at 8:30am will be... very much irrelevant, because as Citi pointed out earlier, the Fed is now data-independent and will keep hiking until financial conditions finally tighten (read: stocks drop). In other words, with the Fed on autopilot, feel free to skip this one - it hardly matters. For what it's worth, here are the consensus expectations for tomorrow's report:

First it was gold last week, then it was half of Nasdaq on July 4th, and now it's silver that is taking it's turn in the 'glitch' camp. As Japanese markets opened tonight, spot silver prices crashed around 6% in a few seconds only to instantly rip back higher...

It appears someone was in a hurry to dump over $450 million worth of silver futures...

For some inexplicable reason, Ray Dalio still thinks the the world not only underwent a deleveraging, but that it was "beautiful." Not only did McKinsey prove that to be completely false two years ago, but for good measure the IIF confirmed as much last week, when it revealed that global debt has hit a record $217 trillion, or 327% of GDP...

... while Citi's Matt King showed that with no demand for credit in the private sector, central banks had no choice but to inject trillions to keep risk prices from collapsing.

It has been a tough month for gold, tumbling over 6% from its early June $1300 highs, but options traders are now positioning for a rebound.

As Bloomberg notes, the cost of bearish over bullish contracts in the $33 billion SPDR Gold Shares exchange-traded fund has dropped to the lowest level since U.S. President Donald Trump’s election.

The precious metal slumped for the fifth time in six days today, with bullion for immediate delivery selling near the lowest price in two months.