Weakest 3 And 6 Month Auctions In 2010, Major Direct Bidder Presence Once Again

The just completed 3 Month and 6 Month Bill auctions were the weakest ones conducted so far in 2010. Out of 14 auctions conducted so far across both maturities this year, the 3 Month closed at the highest rate seen since December, at 0.175%, coupled with the lowest Bid To Cover over the same period, coming in at 3 month low of 3.6.The same is true for the 6 Month: the closing high rate of 0.265% was the highest in 2010, combined with the weakest Bid To Cover YTD, at 3.63. Direct bidders once again came in to save the day.

Fed Closed Meeting Discussing Discount Rate Hike Starting At 11:30 AM Eastern

As Zero Hedge first reported, the Fed is beginning its meeting discussing whether or not to hike the Discount Rate in a few minutes. The meeting is closed to the general public. We will bring you any decision reached by the Fed members as soon as one is disclosed (if any).

Rosenberg On Central Planning, The Truth Behind NFP, And The Unmasking Of "Facts"

Today Rosenberg releases yet another piece that scratches the veneer off the government "data" and finds that the less presentable truth is always beyond just skin deep.

Morning Musings From Art Cashin

The payroll data Friday was roundly trumpeted as a sign the economy was advancing strongly. White House advisor, Larry Summers, is quoted in a headline projecting that the economy had achieved “escape velocity”. The concept, we suppose, is that the economy is finally free of the recession gravity that has been holding it back. The 162,000 jobs added were the best in three years. But the number was below the consensus and well below the more optimistic estimates that blossomed late Thursday. The primary negative in the report was a drop in hourly earnings. That is a rather rare occurrences with some mild deflationary implications. Another negative was the length of unemployment for so many folks.

RANsquawk 5th April Morning Briefing - Stocks, Bonds, FX

RANsquawk 5th April Morning Briefing - Stocks, Bonds, FX

Daily Highlights: 4.05.10

• Asia stocks, commodities rise as US employment data lifts recovery view.
• California hotel foreclosures climb as unemployment curbs business travel
• Construction spending in U.S. declines to seven-year low amid foreclosures
• Crude oil climbs to 17-month high amid signs of global economic recovery.
• Manhattan apartment sales double as buyers seek bargains after price drop
• Mortgage rate on 30-Year fixed U.S. home loans rise to 5.08%
• Service industries in US probably grew at fastest rate since June 2007: Bloomberg survey.

Emerging Markets At A Glance

With the US economy expected to drop to third place, behind China and India, with almost virtual certainty, by 2050, emerging markets, especially those that have a positive trade balance with the US, not just BRICs, will play an increasingly important role, especially now that the US trade deficit has become extremely politicized. Attached is a useful snapshot of the key emerging market trends, particularly in the context of waning economic powerhouses such as the US and Japan. As the authors observe: "The overriding common interest of China, India, Russia and the developed world is to find technological and political solutions to the challenges of energy security, climate change and the rebalancing of global demand. But free trade and free capital flows did not in fact survive the replacement of the UK by the USA as the world’s leading economic power, and this directly contributed to the Great Depression and huge undershoot in global equity returns of the 1930s. History warns that this could happen again, despite a strong common interest in “mutually assured prosperity.” However, this is just another way of saying that it is macro factors rather than micro ones that are most germane to the valuation debate. When people assert that the market is overvalued, they are really expressing their skepticism about the future of US productivity growth and/or the future of globalization. Logically enough, the reverse is also true: if you believe in the potential benefits of accelerating technological change and the dramatic rise of the emerging world, then the next decade for US equities is likely to be a bright one."