Confused as to why US equity futures are levitating once again this morning (aside from a pre-open lift to restore retail's confidence to buy some more all-time highs)? Have no fear, the JPY is here. A sudden (and entirely un-news-driven) ramp in JPY crosses has lifted the S&P to overnight highs, dragged Treasury yields higher, and pushed gold and silver prices lower as the correlated cross-asset-class algos play free in the pre-open. Only problem with all this exuberance, the 10/24/13 T-Bill yiled has exploded 6bps higher to 22.5bps this morning as it is clear short-term risk of a missed payment is rising fast.
It would seem the JPY ramp has done its job for now running stops above the highs for stocks...
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and now back to the real news - Treasuries are increasingly fearful that a missed payment will occur...
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Charts: Bloomberg