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incredibile dietrofront del T-bronx
11:55 am - Can't Touch This: The action in the treasuries has been working off of sub-standard volume & the rest of the session will be devoted to cleaning-up with perhaps a late day flurry of end-of-week, pre-holiday, what-the-heck-you-can't-stay-short this-stuff buying. Mid-session has seen prices back-off as some of the short-covering support has been pushed out of the market. The economic cheerleaders have been out in force (speaking of which, please see the interview of our Economist & honorary BondSquad member Tim Rogers in Dec's Journal of Financial Planning) while a contingent of the worrywarts will keep quiet until at least Mon. The curve has been held in a tight range with the 2-10-yr yield spread running -12.6. Headline & core CPI were softer-than expected which would ordinarily tug the dollar well lower. Instead, the greenback is mixed with a strong run against the euro & weakening just slightly against the yen. Assisting the buck was a better-than expected net foreign flows while industrial production & capacity utilization were better & lower, respectively. The euro is now way down at 1.3093 after stalling out at 1.3186 post-data while the yen is stronger at 117.8500 from 118.3200. Spot gold is down at 624.31 (-1.54) after topping out at 629.17 while crude oil is up at 62.90 (+0.39).
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