NY Fed

Something is broken in the US bond market.

One day after the NY Fed unexpectedly announced yesterday's Agency MBS POMO was cancelled (then rescheduled to later in the day) due to "technical difficulties", moments ago the US Treasury announced that with 10 minutes to go before today's 7 Year auction, that the auction is being rescheduled for tomorrow due to, drumroll, "technical issues."

This is the full statement it said:

NEW CLOSING DATE AND TIMES FOR TODAY'S 7-YEAR NOTE AUCTION

As most market structure watchers are well aware, the biggest debate currently roiling the field of equity markets revolves around the August 21, 2015 submission by the dark pool made famous by Michael Lewis' Flash Boys, IEX, in which it seekis to become a public trading venue that will compete with the New York Stock Exchange and Nasdaq Stock Market. What makes IEX different from all other "lit" venues and markets is its embedded technology which implements a 350 microsecond order delay which makes HFT frontrunning, spoofing, and quote stuffing of orders impossible.

In what appears to be an orderly process, The NY Fed's first Reverse Repo operation since The FOMC 'raised' rates accepted $105.185 billion of Treasury collateral from 49 banks at 25bps. This is being greeted as good news by many as no major disprutions appear to have occurred... aside from, of course, a 6bps plunge in long-end bond yields, 250 point drop in The Dow, and notable weakness in high-yield bonds.