Bond

French 30-Year Bond Sale Over 4 Times Oversubscribed

In its first bond sale since the presidential election and the first big test of investor sentiment after Emmanuel Macron won the presidency, France received more than €31 billion in demand for a a €7 billion bond offering maturing in just over 30 years.

Euro Surges As Trump Fears Slam Dollar; Futures Poised For New Records

In a replica of Monday's early trading, European shares are down, this time led by health-care stocks even as the Euro surges above 1.1050, the highest level since the US election. Asian equities rose, while S&P futures were unchanged although we expect the ramp to kick in any second, and take the NASDAQ to another all time high. Meanwhile, the US dollar weakened for a fifth day.

A Confused Trader Discusses The VIX And Markets With His Taxi Driver

"I took the opportunity to unburden myself of my current concerns on markets. I explained my fears about the low level of the VIX and the complacency that seems to dominate market thinking. I fretted how financial asset prices keep head remorselessly higher with no rhyme or reason.... He politely listened. Nodded his head."

Trader Admits Sad Truth - "There's Little Upside To Believing Anything Nowadays"

If central bankers hope that investors will start to exhibit sensible behavior, consistent with their fiduciary duties, they need to start speaking their minds. And if that causes markets to back up, so be it. No one believes they aren’t in complete thrall to financial conditions. They are going to have to prove it isn’t the case. So far there’s no indication they have the stomach for it.

Frontrunning: May 15

  • Oil Jumps Over Output Deal (BBG), Saudi Arabia, Russia Favor Extending Oil Cuts Through Next March (BBG)
  • Trump Doctrine Confounds G-7 as Ministers Kick Can to Sicily (BBG)
  • Senate GOP’s agenda is at a moment of reckoning with unpredictable Trump (WaPo)
  • White House Races to Fill FBI Job (WSJ)
  • Former Trump Employees Say He Taped Phone Conversations (WSJ)
  • Monday morning blues as 'WannaCry' hits at workweek's start (AP)

Goldman Lists Two Conditions For The OPEC Production Cut Extension To Work

"We believe that today’s announcement is consistent with OPEC’s desire to achieve both price stability and backwardation, which will help to slow the recovery in shale oil production by curtailing the market's ability to grow future production through forward sales. For the strategy to work, however, we believe two things have to take place."