JPY Jolts Stocks To Overnight Highs As T-Bill Yields Explode Higher

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...

 

and now back to the real news - Treasuries are increasingly fearful that a missed payment will occur...

 

 

Charts: Bloomberg

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