The week begins with a smash that is being blamed on rising interest rates. However, the yield of the 10-year note rose to 1.25% immediately after the Globex reopened last evening and it didn't seem to bother the "metals" at all. Hmmm. So what's really going on here?
Could it be that no one really noticed that bonds had sold off until about 5:00 am ET? I'd say that's unlikely. Could it be that speculators and hedge funds suddenly decided to liquidate gold futures en masse? Again, probably not. Instead, our old buddy Denver Dave lays it our as succinctly as possible:...
