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Tag Archives: Market economics)

3-Month Bills Turmoil Ahead Of March Debt Ceiling Showdown: Bid To Cover Plunges To 8 Year Lows

Despite the GOP's tax reform victory, over the past few weeks, Congress once again punted on a formal decision how to keep government funded and what to do with America's debt ceiling and as a result US legislators simply kicked the can on the agreement of raising the nation’s borrowing limit for another few months. However, with the Treasury expected to breach the ceiling as soon as late March, today's $45 billion 3-Month Bill auction was closely watched as it serves as a fresh gauge of...

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Bitcoin Trust Plunges As Arbitrage Spreads Collapse

Just a week after CME started Bitcoin futures trading (and 2 weeks after CBOE), a number of massive arbitrage premiums have finally started to collapse as shorts dip their toes in a risk-limited way... The first 'arbitrage' is the Bitcoin Futures-Spot spread which was well over $2000 in the first few days of Bitcoin Futures trading. As volumes have picked up in recent days, the premium has compressed to zero today... This is the worst 3-day run for Bitcoin in over a month. And...

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CBOE Website Crashes As Bitcoin Futures Trading Begins

The CBOE’s website crashed within minutes of the CBOE open on Sunday – which also marked the launch of the first bitcoin futures to trade on a major exchange - while the price of a bitcoin spiked 10% in five minutes as the new contract with the ticker XBT fluctuated wildly. Shortly after the initial website crash, the CBOE tweeted that "visitors to cboe.com may find site is performing slower than usual and may at times be temporarily unavailable" due to heavy traffic...

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WTI/RBOB Spike On OPEC Headlines After Bearish Inventory/Production Data

Update: WTI/RBOB was fading after DOE data but then Kuwait dropped the following meaningless headline: OPEC JMMC RECOMMENDS EXTENSION, DIDN'T FINALIZE DURATION. And the algos took over... *  *  * Last night's API-reported surprise crude build sparked selling that not even Russia/Saudi jawboning could rescue, but DOE data showed the exact opposite with a big crude draw and even bigger gasoline draw. Added to a new record high in US crude production and RBOB is fading and WTI...

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Tailing 2Y Auction Prices At Highest Yield Since September 2008 As Foreign Buyers Stay Away

With 2Y yields having jumped sharply in recent week, it was not surprising that today's auction of $26 billion in 2Y paper would have a high yield, and sure enough, printing at a high yield 1.765%, the highest since September 2007, tailing the When Issued 1.763% by 0.2bps, and well above the six previous auction average of 1.410%. This was the third consecutive tailing 2Y auction. The internals were hardly impressive, with the bid-to- cover of 2.725, lower than both last month's 2.74 and...

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WTI/RBOB Extend Losses After Another Big Gasoline Inventory Build

WTI and RBOB have trended lower since last week's inventory data hit and today's API inventory prints (showing a decent crude draw but a relatively large gasoline build - biggest since January compared to DOE data) sparked some more weakness in both oil and gasoline prices.   API Crude -4.079mm (-500k exp) Cushing +2.048mm (+1.8mm exp) - biggest build since March Gasoline +4.19mm (+1mm exp) - biggest build since Jan Distillates -584k After last week's surprise build in...

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WTI/RBOB Drop After Smaller-Than-Expected Gasoline Draw, Big Crude Production Rebound

API data (smaller than expected build) and a weaker dollar have supported WTI overnight but as the DOE data hits, we are reminded that the impact from hurricane season lingers. WTI/RBOB prices kneejerked lower after DOE reported a bigger than expected crude build and a gasoline draw that was considerably smaller than API's reports. Crude production continues to rebound back near cycle highs.   API Crude +1.43mm (+3.9mm exp) Cushing +420k (+900k exp) Gasoline -5.063mm (-2.13mm exp)...

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Tech Tumble Spooks Stocks (Briefly) As VIX Curve Steepens To 7-Month Highs

"A day above ground is a day to buy stocks..."   Trannies were weakest on the day as dip-buyers rescued stocks from red after a mid-afternoon slump...ugly close   Futures show the overall trading a little better - weakness from the EU open, a panic-bid at the US open, big selling pressure mid-afternoon, then rescue into the close (though sellers appears as ETFs settled)...   While short-term Vol sellers remain extremely active - with a crash below 10 sparking this...

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WTI/RBOB Sink After Big Crude Build, Production Jump Offsets Greatest Gasoline Inventory Draw In History

WTI and RBOB prices are higher this morning following API's reported the biggest gasoline draw in history (compared to EIA data). Of course, disruptions (Florida demand and Texas supply) remain dominant but DOE reports a massive 8.4mm draw in Gasoline inventories - the biggest draw ever. The reaction in prices is anti-climactic as production rebounded and crude built dramatically to offset the exuberance. Bloomberg's Javier Blas reminds readers that the report covers the period from...

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The Single Biggest Bullish Catalyst For Oil

Authored by Nick Cunningham via OilPrice.com, One of the key objectives for OPEC is to bring down inventories, a goal that has been elusive this year. But if the oil futures curve is anything to go by, the oil market is showing signs of tightening. Brent futures have recently begun to exhibit a state of backwardation, which is when near-term oil futures trade at a premium to contracts dated further off into the future. This is the first time in years that backwardation has occurred, and...

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