Following yesterday's poor 10 Year showing, which was stock positive (because apparently less demand for bonds means more demand for broken casino products), today moments before the pricing of today's finally for the week $16 billion 30 Year auction, the DJIA ramped again to fresh all time highs on hopes the 30 year would be disappointing. Yet despite a When Issued trading at 2.99%, the 30 Year actually came better than expected at 2.98%, which should have led to a stock sell off, but instead the ramp USDJPY for any reason algos took over, and the stronger auction led to a spike in the USDJPY which in turn pushed stocks even higher. Yes, that is how the stock market "works" in New Normal when broken signals translate, according to algos which confuse price for yield, into completely illogical moves by assorted asset classes.
As for the 30 Year auction, it was stronger in virtually every regard: a Bid to Cover that came at 2.53, or higher than the 2.49 from April, a high yield of 2.98%, less than the 3.00% previously, and an Indirect take down of 38.8%, higher than April's 31.4%. So much for all those who saw that last hour of trading and extrapolate it through 2020, seeing yet another return of the Great Rotation or whatever.
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And result: DJIA all time high, 30 Year higher, USDJPY soaring and VIX green.
The batshit insane "market" continues doing its batshit insane thing.