morning 12-20

Bitcoin having a wild ride overnight as GDAX started trading in bitcoin cash on its website. One issue though is that the company is accusing someone of inside trading as the price moved aggressively before the official announcement from the exchange. Coin base said trading would be halted untill11:00 CST as they investigate. Bitcoin on Coin base traded down to 14K whereas on the other main exchanged the low overnight was still in the mid 15000’s.Plenty of arbitrage opportunity one would think.
The other main story is the continued selling of the long end. Too many longs that are now being Forced to sell, yearend rotation out of bonds into stocks, Curve trade unwind Whatever the reason sellers have upper hand again. Not Just in US but in Europe as well German 30 year yield +13 Bps from Monday’s low, Bond yield 12 Bps higher from Mondays lows.US yield curve continue to steepen quite aggressively as this is the Central Theme for Bond markets.
With one minor hiccup, which is causing the house to vote again on Tax bill, it has a clear path to President Trump’s desk. Next up is the fight to keep Government from shutting down. This likely to occur by midnight Friday unless a new spending bill is voted on or the current one is extended for a few more weeks. Most likely the latter will occur.
US stocks Higher European stock steady to lower. Dollar stronger vs. Yen unchanged vs. Euro. Copper on the bid again as more banks issue positive sentiment for next year. The metal, it has closed higher for 10 consecutive days. Oil in a very, very tight range of 30 ticks. API bullish yesterday as Oil stocks drew down 5.2Mln waiting on EIA numbers at 9:30 .Nat Gas higher as colder weather vs 12 hours ago.Gold +$5

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