A reminder, Hong Kong and mainland China closed for weeklong National Day holiday
An Ugly JGB auction has Bonds worldwide trading lower Bunds and gilts – 65 ticks, Bonds down a handle and 10s down 15 ticks 10 year JGB’s( Japanese bonds ) showing yields closed higher by 5.5 Bps,with Futures reporting biggest drop since 2016( per Bloomberg). The bid to cover at auction was lowest since 2016, Bloomberg reporting, “Pensions funds and the nation’s central bank did not support auction after the pledge by Central bank to buy less bonds” also The BOJ on Monday slashed purchase ranges for four major maturities, and indicated it may even stop buying debt of more than 25 years – Bloomberg
Euro trading below the 109 handle, Spot dollar index trading at 2.5 year highs up a few ticks today. Oil bouncing this morning as a report that September Saudi Arabian exports touched a two-year low due to terrorist attack. Gold steady today after yesterday’s collapse to 7 week lows. Stocks steady to sideways spoos up a touch Dax down a bit Grains trading a touch heavy after yesterday’s bullish surprise USDA report., traders will be on the lookout for Colder weather as Calendar turn to October.. Australian Central bank cut rates to record lows as expected and said they are prepared to cut more. A comment regarding the Overnight repo markets the early trade shows no substantial overhang from quarter-end, which should please the New York Fed’s open-market-trading desk. GC (General Collateral) has been as high as 2.00% this morning but no further. Fed Evans on wires this morning saying a” A Strong dollar usually put downward pressure on Inflation”
Politic; Congress out of session for two weeks but that will not stop House committees from Sending subpoenas, Under Impeachment proceeding anyone who fails to comply could be charged with obstruction justice /Over the weekend Trump sent out 80 tweets regarding the Whistle blower.