Indicators Released Overnight
Slightly stronger ADP data and more optimistic purchasing managers.
3 key events happened overnight
US Treasury Quarterly Refunding Announcement:
Coupon Auction Sizes Left Unchanged--guidance is to main sizes for "at least the next several quarters." 6mo Bill to become benchmark starting in Feb."
This gave the treasury market comfort. Scott Bessent taking a measured approach but beginning to move duration of issuance out. Big bond rally greeted the announcement.
An email sent from GSA headquarters in Washington instructed regional managers to begin terminating leases on roughly 7,500 federal offices nationwide
The General Services Administration (GSA), an Independent Agency of the U.S. Government which supports the Basic Function of all other Federal Agencies, with Products, Communication, Transportation, and Office Space, while managing over $500 Billion in U.S. Federal Property, as well as a 215,000 Motor Pool; is reportedly planning to sell upward of 50% of the 363 Million Square Feet of Office Space in 8,397 Buildings, leased and owned by them for Federal Agencies across the United States.
1 week Gold leasing rates have spiked to 10% from a typical 2 or 3%. Gold stock in Asia has been cleared out, and the Bank of England has an 8 week waiting time.
US gold rush drives up borrowing costs for precious metal in London [FT]
Yields drop across the board as markets now have the luxury of dealing with someone that actually know what he's doing.
US 10 Year Government Bond Yield
CRE needed US Govt selling buildings and breaking leases like it needs a hole in the head.
Google disappoints as it continues to investing in AI, despite very little adoption.
Alphabet A Shares Daily
USD weakness and BoJ rate hike talk speeds up YEN appreciation
USD / YEN Daily
BOJ's Tamura makes his case again for faster interest rate hikes [ForexLive]
Big move coming as wedge forms within the widening megaphone.
Bitcoin / USD Daily
The Federal Deposit Insurance Corp. plans to revise bank guidelines for crypto, aiming to allow banks to embark on some crypto activities without getting regulatory permission first. Some banks have met with government officials to push for offering custody of crypto assets, along with “tokenized deposits” that could put some checking accounts on blockchains, according to a person familiar with the matter.
Gold beginning to go parabolic suggests something in the financial system is breaking, but also warns that price cannot keep doing this without a big correction.
Gold / USD Daily