Stocks And Bond Yields Jump As Turbo Tuesday Strikes Again

Another Tuesday, another sell-off in bonds and rally in stocks. The hawkish inflation data this morning sparked stock weakness and bond weakness but while the latter saw yields keep pushing higher, the former rallied back extravagantly ignoring the dismal housing data - well why not, its Tuesday today and FOMC tomorrow. The Russell 2000 was the winner once again as traders embrace high beta as alpha (and financials outperformed (2s30s steepened for once). 10Y Treasuries saw yields jump the 2nd most in 2 months (with 7Y the worst performer +6.5bps). Gold, silver, and copper all rose notably after the inflation data but oil prices decided to waterfall lower having briefly reached unch for the week (as soon as POMO ended). "Most shorted" stocks were smashed higher today (+2%) enabling the early ramp and while a late-day selling scramble nearly rescued failure from success, VIX pressure was enough to save stocks' green track record.

Adding Insult To Injury, Argentina Is Downgraded By S&P: What Happens Next

As reported yesterday, The SCOTUS dealt a major blow to Argentina hopes it would avoid making payments on its "holdout" bonds when it enforced a lower-court ruling that said Argentina can't make payments on its restructured debt unless it also pays holdout hedge funds headed by Elliott Management, best known for briefly seizing an Argentina ship in late 2012. The immediate result was a major rout in the country's sovereign bonds, which also sent Argentina CDS soaring. Sadly for Argentina, this would hardly be the end of it, and about an hour ago, Standard & Poor added insult to injury and lowered its long-term foreign currency rating on Argentina to CCC- from CCC+ citing a "higher risk of default on the country's foreign currency debt." As a result, yesterday's drop in bonds has continued, if at a more moderate pace, and the country's USD bond due 2024 hav continued to sink in intraday trading.  So what is next for the cash-strapped Latin American country for which the road ahead is suddenly quite "challenging" and default appears increasing like the only way out? For the answer we go to Citi's Jeffrey Williams who has laid out the five most likely developments.

Lest We Forget, It's Tuesday

With an hour left in the trading day and stocks surging impressively on absolutely no positive catalyst whatsoever (hawkish inflation, dismal housing data, Baghdad under attack, Ukraine terrorism) apart from higher bond yields, we thought a gentle reminder of what day of the week it is would help those looking for some sanity in the entirely rational "markets" that are not only unrigged by HFT but are also unrigged by massive insider trading...

Is Charlie Rangel Next?

In light of the stunning upset Dave Brat just pulled off against House Majority Leader Eric Cantor earlier this week, many are asking the question as to whether or not we are seeing a genuine political shift against the incredibly corrupt status quo. One thing that is abundantly clear is that any candidate with strong ties to Wall Street will be attacked like a piñata. While the mainstream media likes to talk nonsense about how Brat won because of his opposition to immigration reform, it appears the opposite is true. His winning issue was actually crony capitalism and Wall Street theft. Charlie Rangel has been a U.S. Representative. since 1971 and is currently the third longest serving Congressperson in America. He turned 84 years old this past Wednesday, and was at the center of a tax avoidance scandal several years ago. Of course, if a mere pleb like us were caught avoiding taxes we’d likely face harsh consequences. However, for a crony politician like Charlie Rangel all is forgiven and is allowed to continue to “represent” his constituents... his primary is June 24th.

US Captures The Banghazi Killings Mastermind (And Scapegoat): Meet Ahmed Abu Khatallah

With Hillary Clinton still plagued by relentless confrontations about her role in the Benghazi fiasco, which apparently are "making a difference", and certainly distracting from Obama's otherwise impeccable domestic (and foreign) reign, it was about time the US finally exposed a much more "appropriate" scapegoat for the public anger surrounding the events in Libya on September 11, 2011. Which is precisely what it did earlier today, when it was revealed not only who it believes the "mastermind" of the Benghazi attack is, but that the person in question, Ahmed Khatallah, had been captured.

President Obama To Explain 'Everything' - Live Feed

Quite frankly where do you start? We are sure there will be congratulations for the capture of the Benghazi ringleader (an interestingly timed distraction) but what the President will be asked (if we have a press corps) are: why Iraq wasn't his fault, how 275 boots on the ground are not really boots on the ground, will the US partner with Iran to 'fix' Iraq, and what about new reports of Syria using chlorine gas? Not to mention lost IRS emails, the VA debacle, government-sponsored civilian deaths in GM cars, and of course, how Seattle raising minimum wages will increase jobs?

Bill And Hillary Clinton Support The Estate Tax... They Just Don't Want To Pay It

"Do as we say, not as we do" continues to be the policy of the ruling elites in America (and around the world). Having claimed in her book that the Clintons were 'dead broke' after leaving The White House and that she understood the financial struggles of Americans, Bloomberg reports that the Clintons are using financial planning strategies befitting the top 1% of U.S. households in wealth, creating residence trusts and shifting ownership. Crucially, this is all designed to shield their assets from the estate tax (that now tops out at 40% of assets upon death) - a tax that Bill and Hillary Clinton have long supported. “The estate tax has been historically part of our very fundamental belief that we should have a meritocracy,” Hillary Clinton said at a December 2007 appearance, as long as she doesn't have to pay it, it seems.

At Least A Quarter Of All M&A Deals Involve Insider Trading, Study Finds

As if the market needed any further proof it is not only manipulated and rigged (at least under a legal system that classifies trading on insider information as illegal), but is constantly abused by those with material, non-public information - i.e., insiders - here comes a study conducted by professors at McGill and New York Universities, which, as the NYT summarizes, finds that "A quarter of all public company deals may involve some kind of insider trading."

Greece Goes Medieval - 2/3rds Of Wages Paid In Barter

Do you remember the serfs and servants and villeins and peasants in the good old times of feudalism and the Middle Ages? If you don’t, I have good news for you! The custom of working in return of goods instead of salary revives in Greece of modern European Union and of exquisite Euro area. The results of a survey conducted by the Labor Institute of the Confederation of Labor Union (GSEE) are shocking but not unexpected...

Ukraine Says Gas Pipeline Explosion "Probably Terrorist Attack"

Just minutes after claiming the 'explosion' at "The Brotherhood" pipeline in Ukraine was not an explosion but a 'fire', Ukraine's interior minister Arsen Avakov has stated that:

*UKRAINE SAYS GAS PIPELINE EXPLOSION PROBABLY TERROR ATTACK

Of course, the question is which 'terrorists'? The Right Sector or the Russian separatists. According to reports from UKRTransGas, the fire has now been extinguished but it is the rhetoric of Ukraine's Yatsenyuk "Russia's gas halt aims to destroy Ukraine" that is most troubling as, like Russia's Pushkov warned, Ukraine-Russia tensions have reached a new stage.

London's Whopping 18.7% Home Price Surge Means UK's Housing Bubble Slams China's

A month ago, using the latest UK housing data from Rightmove, we asked a simple question: whose housing bubble is bigger: China's, or the place where increasingly more of China's $25 trillion in bank assets are being parked: the UK (specifically London). Using then available data, the answer was still a toss-up, even if the divergence in directions was quite clear. Earlier today, we finally got the official data from the UK's Office for National Statistics, and we politely retract our question, as rhetorical as it may have been. The reason: there is no contest - the UK's housing bubble has officially slammed China's, and the result is nothing short of a knock out.

Ron Paul Asks "Haven't We Already Done Enough Damage in Iraq?"

In 2006, I invited the late General Bill Odom to address my Thursday Congressional luncheon group. Gen. Odom, a former NSA director, called the Iraq war “the greatest strategic disaster in American history," and told the surprised audience that he could not understand why Congress had not impeached the president for pushing this disaster on the United States. History continues to prove the General’s assessment absolutely correct.

The Myth Of Wage Inflation Comes Crashing Down: Real Hourly Earnings Slide To Lehman Bankruptcy Levels

As reported moments ago by the BLS, real average hourly earnings just posted their third sequential decline in a row, dropping from $10.33 in February, to $10.32 in March, to $10.30 in April, to $10.28 in May.  Furthermore, this was the first year over year decline since October 2012. And to put today's $10.28 real average hourly earnings number in context, this is the same real wage seen last in July 2013, July 2012, March 2011 and then, if one goes further back... the month after Lehman failed!

Katsuyama Vs The High Freaks Round II - Senate Hearing On HFT Live Feed

In what we are sure will be a reassuring hearing full of confirmation that markets are unrigged, safe for investors, and why retail has never had it better, the Permanent Subcommitte on Investigations will start by hearing from IEX's Brad Katusyama who will, as he did before, put them straight on the real actions of the high frequency trading community... Remember the last time HFTs tried to defend themselves... they lied.