Abracadabra - Uncovering The Fed's 'Magnificent Fraud'

Is there one in ten thousand of the millions of people who sit at desks all day long from sea to shining sea who have a clue how unwinding the Fed balance sheet works? Or what its relationship is to the real world?

Bipartisan 'Cryptocurrency Fairness Act' Moves to Congress

Today, if you buy a cup of coffee with bitcoins, you’ll have to calculate and report any gains that you experienced and pay tax on any gains. Under the bill, any transaction under $600 would be completely exempt...

China Unveils Plan To Combat Trump Tax Reform: “We’ll Have Tough Battles"

Beijing is putting in place a contingency plan to combat consequences for China of U.S. tax changes as well as expected interest-rate increases by the Federal Reserve. Under the plan the PBOC will "deploy a combination of tools—higher interest rates, tighter capital controls and more-frequent currency intervention—to keep money at home and support the yuan."

The SoCal Wildfires Are Now Larger Than New York City And Boston Combined

It’s been nearly a week since the first stirrings of the wildfires ripping across Southern California sprang to life, and firefighters are still struggling to contain the blazes. The two largest and most destructive fires are growing despite firefighters’ best efforts at containment as the powerful Santa Ana winds – which are picking back up after another brief lull - fan the flames.

Treasurys Sell Off After Ugly, Tailing 10Y Auction Despite Record Specialness In Repo

If the 3Y TSY auction which priced earlier was stellar, outperforming historical averages on every metric, then the just concluded 9-year, 11-month reopening of CUSIP 3F5 was mediocre at best, but more surprisingly, was the first 10Y auction to tail at a time when short interests - according to the repo market - was literally off the charts.

SocGen Thinks Emerging Markets Are Breaking Down: Here's Why

As SocGen notes on Monday, much of the recent EM weakness has stemmed from a sell-off in companies with the poorest balance sheets. These typically lower quality stocks had been performing strongly for most of this year, having at one stage been up by 30%, ytd but have now fallen 8% in a month.

The "Exit" Problem

"The collective wisdom of market participants is generally 'right' during the middle of a market advance but 'wrong' at market peaks and troughs..."

Stellar 3Y Auction: Highest Bid To Cover Since Sept 2015, Foreign Demand Surges

Unlike last month's ugly 3Y auction, today's just concluded sale of $24 billion in 3 year paper was stellar, stopping through the When Issued 1.934% by 0.2bps, a surge in buyside demand as the Bid to Cover jumped from 2.76 to 3.15, the highest since September 2015, while Indirect Bidders took down the most since August.