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PANDORA’S BOX
EVERYTHING GOT OUT. THE HOPE IS AT THE BOTTOM.
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THE ONE-WAY DOOR
The Treasury Bid Six Billion And Yields Still Rose
Wednesday’s operation tripled the normal size. The ten year sat near 4.85 percent anyway.
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The buyer showed up. The Treasury said it would buy back six billion dollars of government debt on Wednesday, three times the normal operation. The ten year yield did not fall.
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That is the part worth keeping. A government can bid for its own paper. It cannot make anyone else want it.
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4.85%
TEN YEAR YIELD AFTER THE SIX BILLION BID
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Brent pushed above $101.90 this morning after Tehran made clear it is ready for a long fight. Oil is setting the price of money again. |
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Europe votes today. A quarter point move to 2.5 percent is close to fully priced. Euro area inflation ran 3.3 percent in August, with energy at 14.3.
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FROM OUTSIDE THE BOX
We believe Executive Order 14241 has unleashed a potentially huge change to America’s money.
Republican or Democrat, whether you support or oppose Trump’s New Dollar, you could soon be using it. If you have savings in the bank or a stock portfolio, we believe you need to understand what’s unfolding, and take specific action to prepare.
In Porter Stansberry’s new documentary, you’ll discover:
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How the last time America reset its money, it minted 1,300 new millionaires a day, and why we believe what’s coming could be bigger still. |
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The 5 assets to own before America’s new money rolls out, including the one Porter would buy today for immediate exposure. |
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The critical resources Trump is moving heaven and earth to control, because America’s new money depends on it. |
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Why the U.S. government is suddenly buying ownership stakes in tiny American mining companies, a move not seen since the depths of World War II. |
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Why a single gathering of world leaders this December, at Trump’s own Miami resort, could be the moment America’s new dollar is revealed to the world as a done deal. |
Many thanks,
Jared Kelly, CEO, Porter & Co.
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The buyback was supposed to be the answer. It turned out to be the question.
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Yields are set by whoever is willing to hold the paper, not by whoever wants them lower. That is who the Treasury was bidding against on Wednesday.
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EVERY LEAD PASSES BEFORE IT RUNS
The One-Way-Door Test
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Can it be undone?
The operation can run again, and the calendar goes to November 4. Wednesday’s answer is already on the record.
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Who is already repositioning?
Traders are betting on four more hikes between the European Central Bank and the Bank of England. Brent above $101 is doing that work.
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What does being late cost?
PPI prints at 8:30 this morning. CPI lands tomorrow, the last one before the Fed votes.
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THE MOVE · WHILE THERE IS STILL TIME
Compare what your bank pays you to what a Treasury bill pays.
Both numbers are public and take a minute to find. If the Fed cuts later, a bill holds today’s rate while a savings account does not. |
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ALSO GOT LOOSE TODAY
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American forces destroyed five Iranian tankers on Wednesday. British stocks fell nearly 1 percent as crude climbed. |
WARS |
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The Dow closed Tuesday down 511 points. RBC told clients the odds of a 5 to 10 percent pullback have grown. |
MONEY |
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Qualcomm rose more than 7 percent after saying it will help build out Amazon’s artificial intelligence infrastructure. |
MACHINES |
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SOURCES · U.S. TREASURY BUYBACK OPERATION, SEPT 9 · ICE BRENT, SEPT 10 · EUROSTAT, AUGUST FLASH · BUREAU OF LABOR STATISTICS RELEASE SCHEDULE
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WHAT’S LEFT AT THE BOTTOM
The long end did not cooperate. Knowing that this morning beats learning it in October. WE WATCH THE BOX.
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