A bit of news:
- U.K. Elections are on For mid -December
- Google earnings missed expectations stock down ~2%
- Pfizer and Merck beat analyst Expectations and boosted EPS for year
- Yields on 10 year JGBs highest since June
- 10 year yields in New Zealand +11 bps Australia +8.7 global sell off bonds knows no Boundaries per IFR news “Trader were caught heavily invested in Duration and Underinvested of risk assets”
- U.S. Treasury expects to borrow $352 billion in fourth quarter– The U.S. Treasury said on Monday it expects to borrow $29 billion less during the fourth quarter than previously estimated. The department said in a statement it expects to issue $352 billion through credit markets during the October-December period, assuming an end-December cash balance of $410 billion-Reuters.
- China lifts yuan midpoint to strongest level in over two months-Reuters
Plenty of Event risk this week just not today, Economic Calendar show Consumer Confidence at 9:00 as highlight. “Risk” a bit lower so far today Bonds and Bunds a bit higher. Precious metals sold this morning, which goes against the Subtle, risk Off Move in Stocks. Gold -.4% Silver -1.1%, Palladium off fresh all-time highs is down .9% Plenty of Talk of a hawkish Fed rate cut tomorrow so a possibility that Gold is getting ahead of that possible result. Spoos little changed but some European a bit worse for wear, Portugal and Spain -.6% but Dax and Mib little changed. Oil trading Lower -1.4% as Crude Oil calendar spreads continue to trade lower due to worries of too much supply. Nat Gas +4% today, Closed yesterday +3.1% as Cold weather and dip in production squeezing the shorts.