Deja vu all over again. Just as we saw after yesterday's "glitch" in POMO unleashed a huge short-squeeze buying rampage, so today's "technical issue"-delayed 7Y Auction has sparked panic-buying in stocks.
Recall what we said less than an hours ago and moments after the Treasury announcement that today's 7Y auction was rescheduled:
What is more stunning is that just like yesterday's POMO cancellation at 11:15am sent yields surging, so today's announcement has likewise pushed yields higher and stocks promptly followed.
Has the Fed/Treasury complex found a new way to manipulate markets: with the market delta hedging ahead of a POMO or auction, authorities yank the carpet from underneath everyone, and force a scramble to sell positions into the auction, pushing yields higher and unleashing a scramble into risk assets?
Keep an eye on the market: if stocks surge as a result of this unprecedented two-peat, we will have our answer.
Less than an hour later we have the answer: the entire US equity market (and crude oil) has surged as "Most Shorted" stocks get face-ripped.