US: The US seems more bullish than the rest of the world on the debt discussions overseas per futures indications. All eyes are on Europe as US data continues to continue to trickle in on the domestic side supporting low inflation and a slight pickup in economic activity. The market seems lulled to sleep on a vol basis despite the newsflow and Treasuries seem cheap in the front end.
Europe: Spain cleared €2.4B of an expected €2-4B of coupon issuance at disappointing yields. The Spanish treasury issued €1.782B 10Y yielding 5.446% (+83bp to prior) with a bid/cover of 1.67x (v 1.84x prior) and €619M 15Y yielding 5.953% (+141bp to prior) with a bid/cover of 2.52x (v 1.44x prior). Ratings agency actions combined with a lack of positive newsflow out of the EMU have accelerated the problem. Reported recognition on the potential failures of a Eurobond solution and an overall lack want for fiscal unions will continue to pressure the area.
Asia: BOJ purchased over ¥14B in ETFs as part of a ¥5T asset purchase program according to the Nikkei News.
Via Brian Yelvington of Knight Capital