Treasury Bills Reopen… And Aren't Buying It One Bit

Having been closed during the ebullience of the US equity trading session today, we are assured by any and all prognosticators that Treasury-Bills would open to a glorious fanfare of buying as the world their pet rabbit scooped up the 30bps yield for a few days work – since a deal was about to be inked… Not so fast… Most worrisome is that it is not the November/December bills (i.e. the bills in peril from a 6-week extension) but the imminent danger bills that are underperforming. The 10/24/13 (i.e. just past the official “end of the world” date) are 6.5bps wider in early trading at 33bps and as US equity futures roll over very gently, the supporting cast of JPY carry trades are also losing their momentum… time for another rumor of a deal stat!


T-Bills ain’t buying it…


And the ever so supportive visible hand of the JPY-carry mob is drifting south…


Charts: Bloomberg


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