Morning 9-25

Everything trading lower with exception of Dollar, Spoos, treasuries, oil Gold and copper all in the red. The Dollar has staged an impressive rally over the last hour or so and this may be weighing a bit on Commoditties, API Oil numbers were bearish yesterday evening and this too is weighing on Crude prices down 2%. The JPY traded lower likely do to this from Reuters “5y JGBs hit a record low overnight of -0.40% after falling through the lows of last month July 2016 lows. The move has been helped by BoJ governor Kuroda’s comments on Tuesday that said that easing policy further would involve pushing down short- and medium-term rates without flattening the yield curve too”  If  Stocks are trading risk Off due to Impeachment inquiry then one would think Bonds would be bid. Let us wait and see the results of today Repo operation and then discuss what Bonds are doing. European Bourses all in the red Dax -1% .China did pledge to buy More U.S. Hogs so I will be keeping an Eye on that market when it open as 8;30

Political issues front and center now for  U.S. markets and these issues will not end soon. Talk starting to emerge regarding trading a “political market” and they are not good (Bloomberg) — When it comes to having an edge in trading financial assets during times of acute political uncertainty, all I can say is that I wish you good luck. One need only look at the ebb and flow of sterling positioning during the tortuous Brexit process to observe how having a view isn’t quite the same as having an edge, and any impeachment proceedings against Donald Trump may well exhibit the same flavor.

Results from Repo Operation is bullish Bonds   From IFR -Overnight Repo sees largest oversubscription so far $92 bn bids for $75 bn operation ….Bullish bonds

Fed speak today

9:00 Feds George and Brainard

President trump will speak later at the U.N. I will be monitoring Political twitter as the pro and against Impeachment conversation will be public. No Economic releases of Note but weekly Mortgage applications reported one of the biggest weekly drops in months. As a side note the U.S. house of representatives is on a two week break starting next week??/

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