It's a risk-on mood around the world, as China makes an unexpected trade concession by slashing auto import tariffs to 15%, while the Italian bond rout is taking a break, leading to a sharp rebound in the euro as the dollar slides.
"And the most important thing to realize is that the only solution to our budget mess is genuine entitlement reform. Which is why we need constitutional (and comprehensive) limits on total outlays. Politicians will only do what’s right if every other option is off the table."
It was a relatively quiet session until a little after 5am ET when all early-morning market moves were superseded by aggressive cross-asset reaction - mostly in the form of selling of anything US-linked - to a Bloomberg report that China is reconsidering its UST holdings.