As many of my regular readers know, I maintain fairly bizarre hours as I’m usually in the office early getting things accomplished and sometimes up extremely late when historic moves or happenings occur in economic situations or markets.
Another way of phrasing this is that I haven’t had a lot of sleep lately.
Thus on the social media platform formerly known as Twitter and should now be renamed “Glitch-X” I have been posting up strange occurrences in the evening where suddenly the United States T-Bill markets see yields explode higher as apparently Japanese institutions are liquidating billions of dollars of their holdings to raise cash.
It was first noticed by this author on April 8th and to call the pattern disturbing is an understatement.
It continued into the next evening in the belly of the US Treasury curve:
The US Treasury market was already in chaos and this just added to it the next evening:
Then moving into the 14th, boom, again:
It continued into the next day:
Are we beginning to detect a pattern here boys and girls? Because whatever crisis there is/was in Japan, it continued into the next week:
And if one looks at the chart of the 1 year US Treasury, it hasn’t been behaving rationally either:
This pattern is not of such violent proportions as the shorter maturities, however moves in US debt instruments are supposed to be glacial. Instead they have started trading like memecoins being pushed by Trump’s relatives or late night television hosts and this is not good.
If Asian insurers and banks are liquidating these instruments it means US hedge fund, banks, and probably even the Federal Reserve are absorbing this short term debt via back door methods. It always happens overnight and seems to reflect a massive necessity to raise US dollars as quickly as possible.
For the moment, until all of the detailed transaction data surfaces, all I can offer is this one bit of advice:
Go long instability and pray.
