As these pages warned almost twelve hours ago in a little article titled:
Nothing Matters Until 13:00
this author said the following:
Equity markets will do whatever they want, but what we are seeing in the Asian and early European trading sessions is a warning and for some strange reason the bubble seeking, instability ignoring, ever gambling American retail public thinks this stress is contained because Jay Powell has never let them down.
Obviously these souls missed all of November and December of 2018.
Sometimes you just have to gloat a wee bit. This isn’t because I put my entire portfolio on the line, as I’m not that stupid in this current economic regime, but due to the fact that there is nothing stable about the American economic outlook which is in fact destabilizing the world twenty-four hours a day, seven days a week.
Just because the United States shuts down at 4 p.m. ET on Friday’s, the rest of the world continues from Bitcoin to Dubai and into the wee hours of Sunday night. Even when there is a holiday in America much to the chagrin and control of the Robin Hoodies who think they have a grasp on credit markets and history since 2022.
This brings us to the auction results from today’s 20 Year US Treasury Bond which actually only got a C- from Rick Santelli:
I can not disagree with him but one does have to wonder why accept any noncompetitive bids if you had an overhang of indirect bidders tendered unless it was to suppress the yield.
So what was the consequence of this nightmare auction?
Needless to say the entire US Government Treasury yield curve jumped up about 10 basis points today on average. And this wasn’t a bad day, just a warning from the bond vigilantes.
Yes, those son of a bitches are still around.
Meanwhile in speculative equity land, the message was finally received:
Yeah, some kids playing with 0DTE options got their fingers, toes, and privates burned today. They’d best hope mom and dad have the money to cover their losses.
What does this mean for the future?
The meeting with US Treasury Secretary Bessent and Japanese Finance Minister Kato resulted in this statement which moved the USDJPY sharply:
And the result of that statement?
In other words, instability, specifically President Instability along with a very bizarre legislative session in the US House of Representatives rules the day.
No wonder China, Japan, Korea and even the European Union do not take our offer of “trade negotiations” seriously.
Got gold?
