Groupon has scored a new client for its post-IPO coming out party, the US Treasury. With QE going on summer hiatus, the new relationship may prove to be an important one. On auction days Groupon customers will be able to purchase Notes at up to 40% off the market price. A disclaimer would be attached that states the Fed could demand the security at a future date. An experiment with 50% off debt securities is going on now in Europe. The early results indicate Groupon better go global quickly.
For today, another massively convoluted data point will deliver a host of Macro Market calls. For us the growth, to the extant there is any, is too low. After 2 very strong months, we do not advocate buying up on a weak print. Debt ceiling bickering or not, supply returns next week. As QE wraps up - even temporarily - the flood of cash into the money market this year will also recede. This should bring some elasticity back to repo and LIBOR rates. The Euro at 145 is a harsh view of the dollar and the US situation. In reality, the value is increasing sovereign problems and will need to decline in a restructuring, re-profiling, non-CDS triggering, collateral accepting, term extending, austerity driving, burden sharing, non-defaulting default. Due out today.