Bond

The Reverse Tepper Moment Looms

Seven years ago when Tepper made his bold call, the Fed was trying their best to get stocks higher. At that point, no one believed, and it took guts to ride along in the Fed’s wagon. Today, the Fed is trying to keep financial conditions from becoming too easy, and once again no one believes.

Oil Bear Market Sends Global Stocks, Yields Sliding; Chinese MSCI Addition Fizzles

In an eventful overnight session which saw a historic transition in Saudi Arabia, an unexpeted Republican victory in the Georgia Special Election, China's inclusion in the MSCI EM index and Travis Kalanick's resignation, S&P futures continued to fall, alongside stock markets in Asia and Europe, while oil prices extended their drop despite a larger than expected draw reported by API on Tuesday.

Illinois Comptroller: "The State Can No Longer Function"

"The state can no longer function without a responsible and complete budget... We are effectively hemorrhaging money... I have been very vocal regarding these issues and the budgetary impasse since assuming office six months ago; however we are now reaching a new phase of crisis."

China 'Rescues' Bond Market In Symbolic Move But Yield Curve Remains Inverted

For the 10th day in a row, China's bond yield curve remains inverted (the longest in history). However, in a very symbolic move overnight, China's Ministry of Finance bought 1.26 billion yuan of 1-year bonds for the first time in history via the secondary market. While yields tumbled on the rescue attempt, the curve remains inverted...

Futures, European Stocks Flat As Oil Suddenly Tumbles; Pound Slides

European stocks were flat after starting off strongly earlier, dragged lower by energy stocks. Asian stocks, U.S. futures little changed as oil tumbled with Brent tumbling as low as $45.85/bbl to the lowest intraday since November 30 and taking out a 38.2% Fib support, after a one-minute spike in volume to a day-high 5,208 lots just after 6am, with WTI mirroring Brent's momentum, and falling as much as 98c to $43.22, lowest since November 14.