Ground View

The 3 year auction was 3.3x oversubscribed at .554. Today Uncle Sam sells 21 B 10 year notes and more importantly about 8.5B 3/13-10/13 paper for Twist.

The 2 year note has quietly doubled in yield from the low. The Eurodollar futures curve for edh12-edh13 has gone from -8 to +17+. The Chart is provocative given the Fed's language.

The overwhelming consensus opinion can be summed up: Low to stall speed growth, High volatility, Rolling crisis. In short, the Street now has a handle on the last 3 years activity. (click on image to enlarge)

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