Following hot on the heels of Austria's record 70 Year bond issue, there was some concern if today's 2Y Treasury auction would not fall flat on its face when the results printed at 1pm. However, it appears that just as there was demand for duration, so there was interest in "safety" paper, and as a result, the just concluded 2Y auction priced at 0.855%, 0.1bps inside the When Issued, which was also the highest yield on 2Y paper since May.
When the Affordable Care Act open enrollment period begins next week customers will see some changes, including fewer choices and higher prices. In Pennsylvania, the number of insurers in the marketplace has gone from 13 to eight. But the worst fate is set to befall the city that famously booed Santa Claus, Philadelphia, where CBS reports that just two insurers are left and premiums are expected to rise 53%.
Let's face it - lots of stuff no longer works very well. As costs rise, globalization supplies defective, pirated parts, and fewer people care due to burn-out, more and more of everyday life falls into the category of "no longer works very well." Every one of those things that no longer works well offers an opportunity for a self-motivated person to fix someone else's problem...
The latest evidence of the unprecedented scramble for yield and duration came yesterday when it was revealed that Austria would join the rest of the Eurozone in selling ultra-long dated debt in the form of 70 Year bonds. It didn't take long to find willing buyers, and moments ago Bloomberg reported that this offering has just priced to yield 53 bps more than that on the February 2047 security.
If you already thought the Executive Order system falls somewhere between problematic and completely unconstitutional, this takes it to a whole new, never before seen level of corruption. Thanks to all the leaks, America now knows our government is essentially one giant pay-for-play operation. That’s how it works.
Just as we warned previously, it appears Russia is spoiling the oil-rally party. IFX reports that Russia's envoy has stated that they are "against oil output cuts." Furthermore, seemingly confirming no 'cut', Venezuela's Pino says "freeze" deal may only be temporary. So freeze at best (at record levels) and no cut..
Sterling is being pounded back below 1.21 - weakest since the flash crash lows, back to 31 year lows. The drop lacks an obvious trigger (more technical levels), but as The FT reports, nerves appear to be building in the run-up to a scheduled appearance by Bank of England governor Mark Carney to a House of Lords committee at 15:35 London time.
With exactly 2 weeks left until the November 8 presidential election, Wikileaks continues its ongoing Podesta dump by unveiling another 1,299 emails in the latest Part 18 of its release, bringing the total emails released so far to exactly 31,534, with just under 40% of the total dump left to go.
For the first time since June, The Conference Board's Consumer Confidence index declined YoY, plunging from near cycle highs at 104.1 (revised lower to 103.5) to 98.6 (missing 101.5 expectations), this is the biggest monthly plunge since Nov 2015, catching down to UMich and Bloomberg surveys. Employment and Business Conditions sentiment declined notably as did 'plans to buy' a home or appliance.
"...The salesman balanced the two coins on his forefingers, and placing them near my ear, he gently touched one against the other. The sound was the delightfully pure ringing of gold! So that’s how I became a gold-bug at age 10. I still have them, after all these long years – I am now 84..my gold coins went from 10 silver pesos in 1942, to 1,523,000 paper pesos in the course of about 74 years."
The US Dollar Index is up 5 weeks in a row and has just crossed above 99 for the first time since January 2016. As December rate-hike odds have surged since the Brexit vote, so the USD Index has tracked almost perfectly, rising almost 7% in that time (the fastest rise in 18 months)...
"Everything is awesome," right? According to the non-seasonally adjusted S&P CoreLogic (Case-Shiller) Home Price index, prices have recovered all of their losses and are back at the highest since June 2006 record highs in August. All 20 cities saw home prices rises year-over-year (and 14 up MoM) but we note that this data does lag the disappointing home sales data from September.
Norwegian authorities reported that a radioactive leak had taken place at a nuclear research reactor in southern Norway. The reactor at the Institute for Energy Technology (IFE) in Halden leaked radioactive iodine, the Norwegian Radiation Protection Authority (NRPA) said.