Oct 11. Calm before the storm. Calm beneath the surface. Maybe it’s just calm
–“It’s shocking how little time is required to take a volcanic system from being quiet and sitting there to the edge of an eruption,” said Ms. Shamloo. This quote is from an article on the supervolcano at Yellowstone. “Scientists suspect that a supereruption scars the planet every 100,000 years…” (And the VIX will still be under 10).
https://www.nytimes.com/2017/10/10/science/yellowstone-volcano-eruption.html
–Nothing but calm in rates yesterday. Low volume, slightly flatter curve. Green eurodollars the lead performer, closing +3 on the day. There was a minor bid in treasuries associated with the Catalan withdrawal speech, which faded. Euro this morning is holding yesterday’s gains at 118.10. USD weak across the board yesterday.
–Crude oil had a strong bounce yesterday, CLX +1.36 late at 50.94 and has added another 50 cents this morning.
–Hurricanes, floods, fires and earthquakes. And the Fed’s Kaplan sees the low ten year rate as “a little ominous” because it hasn’t risen. Well, it probably WOULD have risen if the Fed hadn’t taken every possible step possible to make sure that nothing bad could happen from trimming the balance sheet.
–Today’s events include 3 and 10 year auctions. FOMC minutes in the afternoon.
–Home Depot being forced to create video tutorials for the next generation of consumers, as millennials apparently are unsure about how to use screwdrivers and tape measures. “So I wrote this code that arbs bitcoin on different exchanges to a basket of currencies that runs automatically across times zones….HEY! What do you call THIS thing? A tape measure?” Let’s hope that the next war is carried out completely in cyberspace. https://www.youtube.com/watch?v=M73r32vK7C4
