DOJ Reverses Obama-Era Decision To Phase Out Private Prisons

Moments ago, US Attorney General Jeff Sessions reversed an Obama-era memo to phase out the use of private prisons, signalling his support for federal use of such facilities and advising that the Bureau of Prisons will "return to its previous approach to the use of private prisons."

Are Rate Hikes Bad For Gold?

Gold does not necessarily rise and fall with interest rates, jewelry demand in India, or any other widely believed nonsense. Rather, gold has moved in conjunction with perceptions as to whether or not the Fed and central banks have everything under control.

RBC Warns "Seeing Clear Signs Of 'Reflation Trade' Unwinds"

"USD longs are being hit while UST / ED shorts are being squeezed on this reset of the ‘fiscal policy kicker’ (1. tax policy downgrade, 2. infrastructure delay) and growth expectations being re-priced lower... 'knocking on' into popular 'reflation' trade positioning."

Recession Concerns Grow After Gasoline Demand Slides Most In 16 Years

Among the numbers in today's weekly update by the DOE, the most anticipated one was that of implied gasoline demand: what it revealed was troubling, with gasoline demand in the past 4 weeks sliding some 5.2% compared to last week, a level which as Goldman qualified recently, "would require a US recession."

Mediocre Demand For "Tailing", 7Y Treasury

When today's 7Y printed at 2.197% (vs the 6 previous auction average of 1.883%) it tailed the WI of 2.196% by 0.1bp, as once again there were few overhanging shorts to squeeze. The internals were average at best.

45 Trillion Reasons Why Gary Cohn Has Recused Himself From All Goldman Matters

“consistent with the stringent ethics rules established by the Trump Administration, Mr Cohn will recuse himself from participating in any matter directly involving his former employer, Goldman Sachs. He will also recuse himself from any matter or potential rulemaking before the CFTC in which Goldman Sachs has participated.”