Saudi Arabia will hold a press conference later today to update the status of her oil production, Talk /chatter is that roughly 2.5 Million barrels may be lost for weeks and possibly months. Both Brent and Crude taking a breather trading lower by .9% as markets try to price in the length of disruption. Bloomberg story stating that October oil loading from Saudi Arabia may be delayed and Citi with a note saying full production will not happen until year-end

Another story getting plenty of Focus is the overnight repo rate, or the rate at which central bank or banks repurchase govt securities. This rate has spike today and yesterday as a Bit of Dollar squeeze takes place as  a bit of collateral squeeze ensues .This type of action is leading a few stories to be printed that  FOMC is losing control of the Overnight rate ,if this would to continue beyond Wednesday  Traders might start to worry about issues in credit market. Fed decision talk of  A better explanation from IFR :

*Yesterday GC spiked to 4.75% after opening at 2.55% and closed at 2.25%- so quite volatile. Today GC opened at 3.85% bid, was hit hard, and now has traded as high as 9.00%- mortgage collateral has been as high as 9.50%. Currently the collateral markets are experiencing poor liquidity- trading with 100.0 bps bid to ask spreads. *On the run, the Treasuries were funded early at around the 3.83% level, so not everything is spiking higher. Today’s dislocation is no doubt follow- through to a complacent market loaded with collateral awaiting the FOMC rate decision

Spoos sideways to lower, European bourse trading heavy to mixed  Ireland -1.9%  but dax only -.4% treasuries sideways to higher as the vigil for tomorrows FOMC decision is starting. Currencies markets flat Base metals Lower across board, Nickle -3% (economic slowdown fears back?) Gold +/4% and Silver unchanged.

Econ calendar light today

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