Having given back all of Charlie Dent's optimism rally overnight (and half of Harry Reid's), US equities are rallying once more on the back of another JPY induced momentum ignition. This utter farce is becoming whimsical as the Treasury Bill market is literally collapsing. 10/31/13 Bills are 16bps higher in yield overnight at 62.5bps as the whole front-end has lifted dramatically from just yesterday. GC Repo is higher again and as we noted last night fails-to-deliver are on the rise again. Something is very broken here and one can only hope that the heavy bid for Dec VIX futures is enough to protect the machines buying stocks if Reid's hope turns to its normal disappointment. Note that the USD and US Treasuries are alse being sold aggressively.
Despite overnight equity exuberance, T-Bills are decidedly unhappy...
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but stocks don't care, this is a serious BTFATH moment...
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and if you have any doubts as to what is driving US equities.... we tweeted (sarcastically) the need for some JPY momentum ignition...
We need some USDJPY momentum ignition
— zerohedge (@zerohedge) October 16, 2013 [5]
and what happens...
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Charts: Bloomberg