We know it is early in the day for a divergence chart, but the inexorable bid for US equities overnight (amid dismal global economic data from China and Europe) juxtaposed against the seemingly rational response of US Treasuries to drift lower in yield as growth expectations fade just leaves us saying WTF...
[4]
so what is driving S&P 500 futures? Why AUDJPY of course...
[5]
And remember, once Europe closes the correlation flips to EURUSD...
Which reminds us, as would make perfect sense in a world where Europe's economy is in depression (and tail risk has been removed) Spanish, Portuguese, and Italian sovereign bond spreads have collapsed 30-35bps since Friday...
[6]
It would seem that all that excess BoJ/Fed liquidity is now in A-B-J mode - Anything But Japanese...
Charts: Bloomberg