As you can probably imagine given what unfolded in the dollar overnight, Treasury yields continued to decline.
And although the move was faded a bit as bunds sold off on the ECB QE exit plan leak, the risk-off tone was readily apparent as the yield on the 10Y hit 2.0144 at the lows with specialness of the 10Y in repo suggesting a short squeeze:
That’s another new YTD low and the lowest since November as the reflation meme is deep-sixed:
That of course means gold is buoyant, rising to a fresh one-year high. It’s now up three weeks in a row and nearly 8% since “fire and fury”:
Can you imagine what this is going to look like come Monday if things get dicey over the weekend?…
A few more gold and silver door stops will be shined up!