At 53.5bps, the 10/31/13 T-Bills are now at Debt-Ceiling-Debacle 2013 highs having pushed higher in yield once again this evening. This may come as a surprise to those staring incredulously at the 14 point rampapalooza in S&P 500 futures on the back of Harry Reid's "optimism". Of course, what really matters is what the JPY crosses are doing since that is the key driver of risk-on at the margin (and is for all intents and purpose inseparable from equity markets for the last 4 days). The initial momentum ignition, however, is beginning to fade as equity investors the world over glimpse over their shoulders at the ghost of debt-ceiling future that T-Bills are reflecting...
Which is the greater fool - the equity bull buying Reid's optimism or the less sanguine bond bears covering any and every short-dated T-Bill (increasingly seen as NOT fungible cash) as GC repo markets implode?
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no matter - spot the difference - one of these is the S&P 500 and the other 2 are JPY crosses...
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As we were always told whenever we questioned the reality of Santa or the tooth fairy - you have to believe to receive... it would appear the herd is "believing" for now...
Charts: Bloomberg
Bonus charts: Indicative of the "broken" repo markets, fails-to-deliver for Treasuries and corporate securities are surging once again...
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