RISK ON
US Treasury and FED Reserve are up to something...
Risk markets are up across the board this morning as Asian an EU weakness was easily mopped up by NY buy programs and both the SP and Nasdaq markets are moving closer to key technical levels, both Fib and Vwap wise. The SP500 is already above the .382 Fib as it has outperformed the NQ easily but we do suspect a reversal of that trend. With the suspicion being the US Treasury is very concerned with Off the Run illiquidity and interest rate spread differentials and the word on the street is that a move to buy some issues here is imminent. As we have noticed the U.S. Treasury On the Runs have been deteriorating rapidly but we have noticed upticks here recently…so maybe the cat is out of the bag and “Risk On” is the trade du jour for now…
Ok here is how the markets stack up right now:
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