June 16/Gold at first rises to $1315 and then whacked by banksters down to $1280.00/MP Jo Cox assassinated in England/Oil breaks into the 46 dollar column/Gold standing increases to 49.474 tonnes/

Good evening Ladies and Gentlemen:

Gold:  $1,296.10 UP $10.30    (comex closing time)

Silver 17.59  UP 10 cents

In the access market 5:15 pm

Gold $1278.60

silver:  17.19

Gold was on a tear early this morning rising to $1315.00.  Silver however lagged behind and rose to only $17.86.  Then somehow there was a story that London’s bookies were betting a 60% chance that there will not be a BREXIT and that sent gold tumbling. THE STORY CAME OUT YESTERDAY MORNING.  This morning ( see story below)  Jo Cox ,MP in the English Parliament was assassinated by a mentally ill person.  There were rumours that this would cause a  delay in the vote and it was from that point on that the Dow rebounded as well as the pummeling of gold/silver.

As far as I am concerned, it was another orchestrated (collusive) comex  raid.

You should be very much aware that the fundamentals remain the same, the USA cannot raise rates as well as Europe is still in turmoil with major banking problems.


i) the June gold contract is an active contract. Last  night we had a good sized 140 notices filed for 14,000 oz to be served upon today.  The total number of notices filed in the first 11 days is enormous at 15,137 for 1,513,700 oz.  (47.082 tonnes)

ii) in silver we had 0 notices filed.  total number of notices served  in the 10 days:  202 for 1,010,000 oz

Let us have a look at the data for today


Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 274.09 tonnes for a loss of 29 tonnes over that period

In silver, the total open interest ROSE by 3027 contracts UP to 202,138 DESPITE THE FACT THAT THE PRICE OF SILVER WAS up by only  8 cents with respect to YESTERDAY’S trading. In ounces, the OI is still represented by just over 1 BILLION oz i.e. 1.010 BILLION TO BE EXACT or 142% of annual global silver production (ex Russia &ex China)

In silver we had 0 notices served upon for nil oz.

In gold, the total comex gold OI ROSE by a CONSIDERABLE 9619 contracts UP to 554,976 as the price of gold was UP $0.80 with YESTERDAY’S trading (at comex closing).


With respect to our two criminal funds, the GLD and the SLV:


We had no changes in inventory, the GLD/Inventory rests at  900.75 tonnes.


We had no change in inventory, silver inventory tonight  rests  at 342.765 million oz.

Both the GLD and SLV are massive frauds as they have no metal behind them!


First, here is an outline of what will be discussed tonight:

1. Today, we had the open interest in silver ROSE by 3027 contracts up to 202,138 despite the fact that the price of silver was UP by only 8 cents with YESTERDAY’S trading. The gold open interest ROSE by 9619 contracts UP to 554,976 as the price of gold was up $0.80  YESTERDAY.

(report Harvey).


2 a) Gold trading overnight Europe, Goldcore

(Mark OByrne/


i)Late  WEDNESDAY night/ THURSDAY morning: Shanghai closed DOWN 14.39 POINTS OR 0.50% / /Hang Sang closed DOWN 429.10 OR 2.10%. The Nikkei closed DOWN 485.44 POINTS OR 3.05% Australia’s all ordinaires  CLOSED UP 0.03% Chinese yuan (ONSHORE) closed DOWN at 6.5891 /Oil FELL to 47.30 dollars per barrel for WTI and 48.31 for Brent. Stocks in Europe ALL IN THE RED . Offshore yuan trades  6.6023 yuan to the dollar vs 6.5891 for onshore yuan.THE SPREAD BETWEEN ONSHORE AND OFFSHORE WIDENS A BIT AS DOLLARS LEAVE THE COUNTRY



none today


Last night 9:30 pm est:

Gold just surpassed 1300.00.  Bitcoin surges in China.  Japanese bonds hit record -.195% on the 10 yr bond.  The Chinese yuan initially surges from its lows of 6.60 and the yen spikes higher at 104.55. The 10 yr treasury bond yield plummets to 1.55%

( zero hedge)


i a)From Europe this morning:  huge BREXIT concerns as more polls indicate a “leave”.  European banks collapse as gold skyrockets past $1308.00.  On top of that the Euro crashes but the yen rises killing off our remaining yen carry traders:

( zero hedge)

i b Then later in the morning, British MP Jo Cox was assassinated allegedly by a man screaming “Britain first”.  This sparked a bullish buying binge in stocks on hopes of a delay in the vote.

(courtesy zero hedge)



i c)Of greater concern for Europe is the rise in peripheral bond risk e.g. Italy and Spain:

( zero hedge)
ii)Another example of the broken system:  A 33 yr Swiss bond yields negative.  You have the privilege of lending Switzerland for 33 years and get back your original investment:

( zero hedge)


none today



i)Oil crashes into the 46 dollar handle, the lowest in 5 weeks and it is now at a crucial support level:

( zero hedge)


ii)A good commentary:


none today


i)I have been harping continually to you that technical analysis will not work when you have continual manipulation of markets especially gold and silver. Saville refuses to answer Chris Powell:

( Chris Powell/GATA)


ii)Bill Murphy interviewed by Elijah Johnson of Finance and Liberty


iii)Not only has sovereign China dumped USA treasuries but Chinese citizens have liquidated vast quantities of USA equities:

( Wong/Bloomberg)

iv)Collectively the holdings of silver in all ETF’s soared to record heights this month.Strangely the price of silver is falling behind the rise in quantity of metal.

( zero hedge)


i.A)This morning, the 10 yr USA bond yield collapses to 1.5244 as the entire world’s bourses were terribly underwater:

( zero hedge)

i)Initial jobless claims rise to 277,000, higher than expected, but it is the Fed’s own Labour Market Index that collapsed to negative 4.3 and that indicates recession:

( zero hedge)

ii)The following is a big headache for the Fed as now “core” inflation i.e. inflation ex food ex energy rose above the Fed’s comfort zone of 2%.  The big problem:  imputed rent!

( zero hedge)

iii)The Fed Philly Mfg index jumps from negative 1.8 to positive 4.7, a little less exuberant than what the mainstream would want.  However deep into the numbers:  number of employees tumble; the very important new orders fall to 4 month lows and the average work week remains deep in contraction mode.  Generally another dismal report:(courtesy zero hedge)/Philly mfg index)

iv)The following is a terrific commentary from our very popular Michael Snyder who gives us 15 major facts that show that the USA economy is imploding

( Michael Snyder/Economic Collapse Blog)

Let us head over to the comex:

The total gold comex open interest ROSE to an OI level of 554,976 for a  gain of 9,619 contracts AS THE PRICE OF GOLD WAS UP $0.80 with respect to YESTERDAY’S TRADING. . WE HAVE ENTERED THE SECOND BIGGEST DELIVERY MONTH OF THE YEAR THAT IS JUNE, A VERY ACTIVE MONTH. For the past two years, we have strangely witnessed two interesting developments and we have generally seen two phenomena happen respect to the gold open interest:  1) total gold comex collapses in OI as we enter any delivery month  and 2) a continual drop in the amount of gold standing in that month as that month progresses. IN THE MONTH OF MAY THE LATER HAD STOPPED. DURING THE MAY WE DID WITNESS A GRADUAL RISE IN AMOUNT STANDING AND THE AMOUNT STANDING AT THE CONCLUSION OF THE MONTH FINISHED AT ITS ZENITH..  IN JUNE, ON FIRST DAY NOTICE WE HAVE CERTAINLY WITNESSED THE FORMER, A HUGE LOSS OF TOTAL OPEN INTEREST CONTRACTS FOR THE ENTIRE GOLD COMEX COMPLEX . HOWEVER WE HAVE MORE THAN MADE UP FOR THE LOSS AS MORE INVESTORS ENTER THE ARENA TO TAKE ON THE CRIMINAL BANKERS. WE HAD ANOTHER GAIN IN JUNE OI TODAY FOR GOLD OZ STANDING IN THIS ACTIVE JUNE CONTRACT.

The FRONT gold contract month of June saw it’s OI fall to 909 for a loss of 296 contracts. We had 297 notices filed yesterday, so we gained 1 contract or 100 additional oz  WILL STAND FOR METAL. The next active contract month is July and here we saw it’s OI rose by a huge 866 contracts up to 3909.This may  be troublesome for our bankers as the front July contract month is extremely high for a non active month and it also refuses to shrivel. The next big active contract month is August and here the OI ROSE by 7,502 contracts UP to 409,876. The estimated volume today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was EXCELLENT at 340,429. The confirmed volume  yesterday (which includes the volume during regular business hours + access market sales the previous day was good at 215,614 contracts. The comex is not in backwardation.

Today we had 140 notices filed for 29700 oz in gold.


And now for the wild silver comex results. Silver OI ROSE by 3027 contracts from 199,111 UP to 202,138 despite the fact that the price of silver was UP BY ONLY 8 cents with YESTERDAY’S TRADING. The front month of June saw it’s OI FALL by 1 contract LOWERING DOWN TO  338. We had 0 notices filed yesterday, so we LOST 1 CONTRACT OR 5,000 SILVER OUNCES WILL NOT STAND FOR DELIVERY. The next big delivery month is July and here the OI ROSE BY 354 contracts UP to 90,828. We have two weeks to go before first day notice. The volume on the comex today (just comex) came in at 92,420 which IS HUMONGOUS. The confirmed volume YESTERDAY (comex + globex) was huge at 61,998. Silver is not in backwardation . London is in backwardation for several months.
We had 0 notices filed for nil oz.

JUNE contract month:

INITIAL standings for JUNE

June 16.
Withdrawals from Dealers Inventory in oz   nil OZ
Withdrawals from Customer Inventory in oz  nil  nil


Deposits to the Dealer Inventory in oz NIL


Deposits to the Customer Inventory, in oz   NIL
No of oz served (contracts) today 140 contracts
(14,000 oz)
No of oz to be served (notices) 769 contracts

76900 oz

Total monthly oz gold served (contracts) so far this month 15,137 contracts (1,513,700 oz)

(47.082 TONNES SO FAR)

Total accumulative withdrawals  of gold from the Dealers inventory this month   1400.01 OZ
Total accumulative withdrawal of gold from the Customer inventory this month  149,885.6 OZ

Today we had 0 dealer DEPOSITS


total dealer deposit:  NIL  0z

Today we had 0 dealer withdrawals:

total dealer withdrawals:  nil oz

Today we had 0 customer deposit:

Total customer deposits; NIL   OZ

Today we had 0 customer withdrawals:


total customer withdrawals:  NIL oz

Today we had 1 adjustment:

i) out of HSBC  32,215.202 oz was adjusted out of the customer and this landed into the dealer account

Today, 0 notices was issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 140 contracts of which 51 notices was stopped (received) by JPMorgan dealer and 71 notices was stopped (received)  by JPMorgan customer account. 
To calculate the initial total number of gold ounces standing for the JUNE contract month, we take the total number of notices filed so far for the month (15,137) x 100 oz  or 1,513,700 oz , to which we  add the difference between the open interest for the front month of JUNE (909 CONTRACTS) minus the number of notices served upon today (140) x 100 oz   x 100 oz per contract equals 1,590,600 oz, the number of ounces standing in this active month.  This number is EXTREMELY huge for JUNE.  THE AMOUNT STANDING FOR GOLD IN MAY HELD THROUGHOUT THE MONTH AND ACTUALLY INCREASED AS THE MONTH PROCEEDED. AND IT SURE LOOKS LIKE IT WILL HAPPEN AGAIN IN JUNE. 
Thus the INITIAL standings for gold for the JUNE. contract month:
No of notices served so far (15,137) x 100 oz  or ounces + {OI for the front month (909) minus the number of  notices served upon today (140) x 100 oz which equals 1,590,500 oz standing in this   active delivery month of JUNE (49.474 tonnes).
WE  gained 1 contract or an additional 100 oz will  stand for GOLD
Since the comex allows GLD shares to be used for settling, it may take quite a while for the physical gold to enter the comex vaults.  So far I have seen little evidence of any settling of contracts but I will continue to monitor it for you. 
We thus have 49.474 tonnes of gold standing for JUNE and 53.05 tonnes of registered gold for sale, waiting to serve upon those standing.  The bankers are still doing their best in cash settling as there is not enough registered gold to satisfy those that are standing.
We now have partial evidence of gold settling for last months deliveries We now have 6.889 TONNES FOR MAY + 49.474 TONNES FOR JUNE + 12.3917 tonnes (April) +2.2311 tonnes (March) + 7.99 (total Feb)- .940 (probable delivery on March 1) tonnes -.0434 tonnes (March 11,12,17,18) + March 31: 1.2470 and then  April 1,2: – .0006 tonnes  and last week April 16 .3203 and April 22 .(0009 tonnes) + april 29  .205 tonnes + May 5:  3.799 and May 6: 1.607 tonnes – MAY 12  .0003- May 18: 1.5635 tonnes-May 19/   2.535 tonnes-May 27 .0185 – .024 TONNES MAY 31 -jUNE 4: .5044 ; june 10 -.0008  = 66.202 tonnes still standing against 53.05 tonnes available.
 Total dealer inventor 1,705,727.692 tonnes or 53.05 tonnes
Total gold inventory (dealer and customer) =8,812,135.971 or 274.09 tonnes 
Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 274.09 tonnes for a loss of 29 tonnes over that period. 
JPMorgan has only 25.70 tonnes of gold total (both dealer and customer)
JPMorgan now has only .900 tonnes left in its dealer account.
And now for silver

June initial standings

 June 16.2016

Withdrawals from Dealers Inventory nil oz
Withdrawals from Customer Inventory  1,267,048.376  oz




Deposits to the Dealer Inventory NIL
Deposits to the Customer Inventory   908,167.130  oz



No of oz served today (contracts) 0 CONTRACTS 

nil OZ

No of oz to be served (notices) 338 contracts

1,690,000 oz

Total monthly oz silver served (contracts) 202 contracts (1,010,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month nil oz
Total accumulative withdrawal  of silver from the Customer inventory this month  19,412,017.2 oz

today we had 0 deposit into the dealer account

total dealer deposit:NIL oz

we had 0 dealer withdrawals:

total dealer withdrawals:  nil

we had 3 customer deposits:

i) Into JPMorgan:  606,692.400 oz

ii) Into Brinks: 299,472.73 oz

iii) Into CNT: 2002.000 oz????

Total customer deposits: 908,167.130  oz.

We had 2 customer withdrawals


i) Out of CNT: 604,629.946 oz

ii) Out of Scotia: 662,418.430  oz


total customer withdrawals:  1,267,048.376 oz



 we had 1 adjustment and it was a doozy:

Out of the JPMorgan vault:

1,038,012.700 oz was adjusted out of the customer and into the dealer account of JPMorgan


The total number of notices filed today for the JUNE contract month is represented by 0 contracts for nil oz. To calculate the number of silver ounces that will stand for delivery in JUNE., we take the total number of notices filed for the month so far at (202) x 5,000 oz  = 1,010,000 oz to which we add the difference between the open interest for the front month of JUNE (338) and the number of notices served upon today (0) x 5000 oz equals the number of ounces standing 
Thus the initial standings for silver for the JUNE contract month:  202 (notices served so far)x 5000 oz +{338 OI for front month of JUNE ) -number of notices served upon today (0)x 5000 oz  equals  2,700,000 of silver standing for the JUNE contract month.
We lost 1 contract or 5,000 additional silver ounces will not stand today.
Total dealer silver:  23.520 million  (RECORD LOW INVENTORY)
Total number of dealer and customer silver:   150.412 million oz
The total open interest on silver is NOW moving closer to its all time high with the record of 207,394 being set May 18.2016. The registered silver (dealer silver) is NOW AT  multi year lows as silver is being drawn out and heading to China and other destinations. The shear movement of silver into and out of the vaults signify that something is going on in silver.
And now the Gold inventory at the GLD
JUNE 16/no changes in GLD/Inventory rests at 900.75 tonnes.
June 15/the farce continues:  another paper deposit of 2.08 tonnes into the GLD/Inventory rests at 900.75 tonnes. Wait until you see tomorrow’s level!!
June 10/a huge “paper” deposit of 6.54 tonnes of gold into the GLD/Inventory rests at 893.92 tonnes
JUNE 9. a huge deposit of 6.23 tonnes of gold into the GLD/Inventory rests at 887.38 tones
June 8/no change in inventory at the GLD/Inventory rests at 881.15 tonnes
june 7/ a tiny withdrawal of .29 tonnes of inventory/probably to pay for fees/Inventory rests at 881.15 tonnes
June 6/no change in gold inventory at the GLD/Inventory rests at 881.44 tonnes
June 3/ We had two big  sized deposits of 4.46 tonnes early this morning and then another 6.24 tonnes late tonight/ new GLD total: 881.44 tonnes  (total: 10.7 tonnes)
June 2/no change in gold inventory at the GLD.Inventory rests at 870.74 tonnes
June 1.2016/ a good sized deposit of 2.08 tonnes/Inventory rests at 870.74 tonnes
May 27/no change in gold inventory at the GLD/Inventory rests at 868.66 tonnes
May 26./no change at the GLD/Inventory rests at 868.66 tonnes
May 25./no change in gold inventory at the GLD/Inventory rests at 868.66 tonnes
MAY 24/ a good sized withdrawal of 3.86 tonnes of paper gold from the GLD/Inventory rests at 868.66 tonnes
May 23./this is rather impossible: another huge deposit of 3.26 tonnes into the GLD with the price of gold down again today?/inventory rests at 872.52 tonnes
May 18 /no changes in inventory at the GLD/Inventory rests at 855.89 tonnes.
May 17/ we had a huge deposit of 4.76 tonnes of gold into the GLD/Inventory rests tonight at 855.89 tonnes/in the last two and 1/2 weeks we have added 50 tonnes of gold and this most likely was all paper gold addition..

June 16.:  inventory rests tonight at 900.75 tonnes


Now the SLV Inventory
JUNE 16./no changes in silver inventory/rests tonight at 342.765 million oz
June 15and the dfarce continues for the SLV/we had a massive 2.376 million oz of a paper deposit into the SLV/Inventory rests at 342.765 million oz
June 10/no change in silver inventory at the SLV/Inventory rests at 338.725 million oz
JUNE 9/no change in silver inventory at the SLV/Inventory rests at 338.725 million oz.
June 8/no change in silver inventory at the SLV/Inventory rests at 338.725 million oz
june 7/ we had a huge addition (deposit) of 1.456 million oz into the SLV/Inventory rests at 338.725 million oz/
June 6/no change at the SLV/Inventory rests at 337.299 million oz/
June 3/ a huge deposit of 1.56 million oz was added to the SLV inventory/new inventory rests at 337.299 million oz
June 2/no change in silver inventory at the SLV/Inventory rests at 335.739 million oz
June 1/no change in silver inventory at hte SLV/inventory rests at 335.739  million oz
May 27/no change in silver inventory at the SLV/Inventory rests at 335.739 million oz/
May 26./ no change in silver inventory at the SLV/Inventory rests at 335.739 million oz
May 25./no change in silver inventory at the SLV/Inventory rests at 335.739
MAY 24/no change in inventory at the SLV/Inventory rests at 335.739 million oz
May 23./we had a small withdrawal of 285,000 oz and that generally means payment of fees.Inventory rests at 335.739 million oz
May 19/no changes in silver inventory at the SLV/Inventory rests at 335.073 million oz
May 18/no changes in silver inventory at the SLV/Inventory rests at 335.073 million oz/
May 17/no change in silver inventory at the SLV/Inventory rests at 335.073 million oz/
June 16.2016: Inventory 342.765 million oz

NPV for Sprott and Central Fund of Canada

1. Central Fund of Canada: traded at Negative 2.2 percent to NAV usa funds and Negative 2.2% to NAV for Cdn funds!!!!
Percentage of fund in gold 61.2%
Percentage of fund in silver:37.5%
cash .+1.3%( June 16/2016). /
2. Sprott silver fund (PSLV): Premium FALLS  to -0.41%!!!! NAV (June 1562016) 
3. Sprott gold fund (PHYS): premium to NAV  RISES TO +2.20% to NAV  ( June 1562016)
Note: Sprott silver trust back  into NEGATIVE territory at -41% /Sprott physical gold trust is back into positive territory at +2.20%/Central fund of Canada’s is still in jail.


And now your overnight trading in gold,THURSDAY MORNING and also physical stories that may interest you:

Trading in gold and silver overnight in Asia and Europe
Mark O’Byrne (Goldcore)

Saville has no time to answer challenging questions


3:19p ET Wednesday, June 15, 2016

Dear Friend of GATA and Gold:

Yesterday your secretary/treasurer tried to put to newsletter writer Steve Saville 11 questions to dispute his assertion this week, in an essay headlined “Four Charts that Invalidate the Gold Price Suppression Story” —


— that complaints about manipulation of the gold market are nonsense.

Your secretary/treasurer’s challenge to Saville was headlined “Saville Loves His Charts But They Don’t Answer the Market-Rigging Question”:


Your secretary/treasurer’s questions largely involved GATA’s extensive documentation of surreptitious intervention in the gold market by governments.

In a short posting at his Internet site today, headlined “I Don’t Love Charts!,” Saville replied that responding to the questions “would not be a good use of my time.” Instead he simply professed his good intentions and integrity:


Of course the questions for which Saville lacks time are only the questions for which all writers who provide technical analysis of the markets generally and the gold market particularly never have time. For honest answers would put their craft out of business. These writers make sweeping assertions on a subject about which they are supremely uninformed but can’t defend them.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.




Bill Murphy interviewed by Elijah Johnson of Finance and Liberty

(courtesy GATA)

GATA Chairman Murphy interviewed on volatility in monetary metals


10:45p ET Wednesday, June 15, 2016

Dear Friend of GATA and Gold:

Interviewed by Elijah Johnson of Finance and Liberty, GATA Chairman Bill Murphy discusses the increasingly volatile trading in gold and silver, signs that the suppression of monetary metals prices is weakening, the U.S. government’s involvement in price suppression, and the possibility that the physical market for the metals will break the paper market. The interview is 17 minutes long and can be heard at You Tube here:


CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.




Not only has sovereign China dumped USA treasuries but Chinese citizens have liquidated vast quantities of USA equities:

(courtesy Wong/Bloomberg)

China dumping more than Treasuries as U.S. stocks join fire sale


By Andrea Wong and Oliver Renick
Bloomberg News
Wednesday, June 15, 2016

For the past year Chinese selling of Treasuries has vexed investors and served as a gauge of the health of the world’s second-largest economy.

The People’s Bank of China, owner of the world’s biggest foreign-exchange reserves, burnt through 20 percent of its war chest since 2014, dumping about $250 billion of U.S. government debt and using the funds to support the yuan and stem capital outflows.

While China’s sales of Treasuries have slowed, its holdings of U.S. equities are now showing steep declines.

The nation’s stash of American stocks sank about $126 billion, or 38 percent, from the end of July through March, to $201 billion, Treasury Department data show. That far outpaces selling by investors globally in that span — total foreign ownership fell just 9 percent. Meanwhile, China’s U.S. government-bond stockpile was relatively stable, dropping roughly $26 billion, or just 2 percent. …

… For the remainder of the report:





Collectively the holdings of silver in all ETF’s soared to record heights this month.Strangely the price of silver is falling behind the rise in quantity of metal.

(courtesy zero hedge)


Silver ETF Holdings Soar To Record Highs

With precious metals prices soaring this week, month, and year on the back of flailing Fed credibility, it is not entirely surprising that assets in exchange-traded funds backed by silver have swelled as investors seek a haven from global economic and political risk. In fact, as of today, Silver ETF holdings have never been higher…


As Bloomberg adds,

Prices of the white metal have advanced 28 percent in 2016, outperforming gold.


“Silver was essentially forgotten by much of the investment community for a long time, thereby creating a great value opportunity,” said Gregor Gregersen, chief executive officer and founder of Singapore-based Silver Bullion Pte.

It appears that the demand for physical holdings in the ETFs has accelerated notably faster than the price has been allowed to rise.


Your early THURSDAY morning currency, Asian stock market results,  important USA/Asian currency crosses, gold/silver pricing overnight along with the price of oil Major stories overnight




2 Nikkei closed DOWN 485.44 OR 3.05% /USA: YEN FALLS  TO 104.33

3. Europe stocks opened ALL IN THE RED  /USA dollar index UP to 94.98/Euro DOWN to 1.1213

3b Japan 10 year bond yield: FALLS  TO -.195%     !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 106.24

3c Nikkei now WELL BELOW 17,000

3d USA/Yen rate now well below the important 120 barrier this morning

3e WTI::  47.30  and Brent: 48.31

3f Gold UP  /Yen UP

3g Japan is to buy the equivalent of 108 billion uSA dollars worth of bond per month or $1.3 trillion. Japan’s GDP equals 5 trillion usa.

Japan to buy 100% of all new Japanese debt and by 2018 they will have 25% of all Japanese debt. Fifty percent of Japanese budget financed with debt.

3h Oil DOWN for WTI and DOWN for Brent this morning

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10 yr bund FALLS to -.013%   German bunds in negative yields from  10 years out

 Greece  sees its 2 year rate RISE to 11.85%/: 

3j Greek 10 year bond yield RISE to  : 8.29%   (YIELD CURVE NOW COMPLETELY INVERTED)

3k Gold at $1305.50/silver $17.70(7:45 am est)   SILVER RESISTANCE AT 16.52 BROKEN 

3l USA vs Russian rouble; (Russian rouble DOWN 32 in  roubles/dollar) 65.85-

3m oil into the 47 dollar handle for WTI and 48 handle for Brent/

3n Higher foreign deposits out of China sees huge risk of outflows and a currency depreciation  (already upon us). This can spell financial disaster for the rest of the world/China forced to do QE!! as it lowers its yuan value to the dollar/expect a huge devaluation imminently from POBC.


30 SNB (Swiss National Bank) still intervening again in the markets driving down the SF. It is not working: USA/SF this morning .9654 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0826 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.


3r the 10 Year German bund now NEGATIVE territory with the 10 year FALLS to  – .013%

/German 10 year rate  negative%!!!

3s The Greece ELA NOW a 71.4 billion euros,

The bank withdrawals were causing massive hardship to the Greek bank. the Greek referendum voted overwhelming “NO”.  Next step for Greece will be the recapitalization of the banks and that will be difficult.

4. USA 10 year treasury bond at 1.565% early this morning. Thirty year rate  at 2.394% /POLICY ERROR)

5. Details Ransquawk, Bloomberg, Deutsche bank/Jim Reid.

(courtesy Jim Reid/Bloomberg/Deutsche bank/zero hedge)

Global Stocks Continue To Plunge As Central Banks Disappoint, Brexit Looms

The last time US equities fell after the Fed came out as overly dovish was in January, when the Fed modestly relented on its “tightening” plan. It was immediately dubbed as “policy error” and led to the February market swoon as a result of Yuan-induced market volatility. But if January was bad for the Fed, yesterday was even worse, with stocks proceeding to stumble and close at the lows after a rambling, disjointed press conference by Yellen failed to convince anyone that the Fed has any idea what it is doing anymore and that the “rate hike cycle may have left the building” as Jeff Gundlach put it. Even Steve Liesman admitted that the Fed is as close to capitulation as I’ve ever seen them.”

“The very dovish comments from Janet Yellen didn’t bring much support,” said Guillermo Hernandez Sampere, the head of trading at MPPM EK in Eppstein, Germany. “The market took a breather yesterday but there was nothing more to it. There aren’t enough buyers out there to prevent the downside. The more people are talking about a possible Brexit the more it creates fear among investors.

The odds of the Fed raising key borrowing costs this year are now below 50 percent. About 28 percent of economists in a Bloomberg survey had forecast additional easing at this BOJ meeting, with 55 percent looking to the next gathering in July. The Bank of England will announce its policy decision at noon in London.

Then the BOJ added insult to injury after Kuroda confirmed the BOJ is likewise trapped and did nothing to ease the pain in either the soaring Yen which is back to October 2014 highs, or the Nikkei, when proceeded to tumble another 3% and is now down over a quarter from its summer of 2015 highs.

The pain was not confined just to Japan however, and stocks slid virtually in every corner of the globe, as the MSCI with commodities after central banks in the U.S and Japan signaled increased concern about the global economic outlook.  Indeed, the selloff that erased $2.4 trillion from global equities in the past week resumed as central bank policy reviews exacerbated investor anxiety at a time when volatility in global markets is surging before the U.K. vote on a Brexit. The BOJ’s decision to leave its record monetary stimulus unchanged came less than 12 hours after the Fed reined in its projection for interest-rate increases over the next two years, with Yellen saying some of the economic forces holding down U.S. borrowing costs may be long-lasting.

And then there is of course the rising fear of Brexit made even worse with the latest Ipsos-Mori poll, which showed a rising percentage of supporters for the Leave camp:


As a result of all of the above, futures on the S&P 500 slipped 0.3%, as U.S. equities are on track to extend losses for a sixth day.  Europe’s Stoxx 600 fell to a four-month low, sliding 1% for its sixth decline in seven days, and U.S. crude retreated for a sixth day in the longest losing streak since February. Bond yields sank to records in Germany, Australia after Japan as Federal Reserve Chair Janet Yellen said next week’s U.K. vote on European Union membership was a factor in the decision to hold interest rates steady. The Yen surged more than 2% as the Bank of Japan refrained from adding any new stimulus, as a result Japan’s Nikkei tumbled 3.0%. The MSCI Emerging Markets Index slid 1% to a three-week low.

Investors will look to data Thursday on initial jobless claims, business sentiment and inflation for further indication of the health of the world’s biggest economy and the trajectory of interest rates.

Market Snapshot

  • S&P 500 futures down 0.3% to 2057
  • Stoxx 600 down 0.9% to 321
  • FTSE 100 down 0.6% to 5930
  • DAX down 0.7% to 9542
  • S&P GSCI Index down 0.9% to 372.9
  • MSCI Asia Pacific down 1.2% to 126
  • Nikkei 225 down 3% to 15434
  • Hang Seng down 2.1% to 20038
  • Shanghai Composite down 0.5% to 2873
  •  S&P/ASX 200 down less than 0.1% to 5146
  • US 10-yr yield down 1bp to 1.56%
  • German 10Yr yield down less than 1bp to -0.02%
  • Italian 10Yr yield up 5bps to 1.55%
  • Spanish 10Yr yield up 4bps to 1.6%
  • Dollar Index down 0.1% to 94.52
  • WTI Crude futures down 1.4% to $47.33
  • Brent Futures down 1.4% to $48.26
  • Gold spot up 1.2% to $1,307
  • Silver spot up 1.3% to $17.75

Top Global Headlines

  • BOJ Keeps Policy Unchanged, Shifting Stimulus Focus to July: Kuroda holds off ahead of Japan election, U.K. vote on Brexit; majority of economists see central bank moving at next meeting
  • Yellen Says Forces Holding Down Rates May Be Long Lasting: Fed chief discusses the “new normal” that’s holding rates down
  • Envision to Merge With AmSurg to Create Health Services Giant: cos. to merge in all-stock deal that will create U.S. provider of physicians and health-care services with combined enterprise value of $15b
  • Cavium to Buy QLogic for About $1.36b to Broaden Products: Cavium will pay $15.50/share for QLogic, consisting of $11 in cash and 0.098 of a share of Cavium stock
  • ASML to Acquire Taiwan’s Hermes Microvision: ASML is buying Taiwan-based Hermes Microvision for about $3.1b, seeking to add technology for creating smaller chips
  • VW Gets More Time to Hammer Out U.S. Diesel-Cheating Accords: judge orders delay due to “highly technical” nature of talks; one-week deferral for settlements with owners and regulators
  • Pioneer Expands as Devon Retreats From Top U.S. Oil Field: shale driller Pioneer to expand rig fleet in Permian Basin; Devon says sales mean divestitures plan is ahead of schedule
  • Amazon Cuts Shipping Fees in Threat to Alibaba’s U.S. Business: prices drop 67% for small, flat items like USB cords, makeup
  • Sumner Redstone Says He No Longer Trusts Viacom CEO or Board: Redstone sends message to Viacom lead director Fred Salerno
  • Oil Falls 6th Day as Easing Disruptions Counter U.S. Supply Drop

Looking at regional markets, we start in Asia, where stocks traded mostly lower as the region digested the FOMC meeting which was more dovish than prior, although Fed Chair Yellen reiterated that all meetings were live, while BoJ also disappointed. Nikkei 225 (-3.0%) underperformed after the BoJ kept its policy on hold which saw USD/JPY decline below the 105.00 level and soured sentiment. BoJ said the decision to keep rates unchanged by 7-2 vote, while monetary base decision was by 8-1 vote. BoJ also stated it expects price trends to steadily increase and that will add stimulus if necessary. Elsewhere, Chinese markets (Hang Seng -2.1%, Shanghai Composite -0.5%) were subdued after Aggregate Financing data missed expectations and a lacklustre liquidity injection by the PBoC, while ASX 200 (0.0%) bucked the trend with consumer discretionary and basic material names leading the advances on reports Crown Resorts are to spin-off some of its property assets and after metals were underpinned by a weaker USD post-FOMC. Finally, 10yr JGBs were immediately pressured after the BoJ kept policy on hold, but then staged a late recovery amid the risk-averse tone, with yields across the curve also declining fresh record lows today. BoJ kept monetary policy unchanged with the Annual Rise in Monetary Base at JPY 80trl and Policy Rate kept at -0.10%.

Top Asian News

  • Yen Gains Beyond 105 Per Dollar for First Time Since Sept 2014: USD/JPY slides as much as 1.4% to 104.53 after BOJ maintains policy
  • China Dumping More Than Treasuries as U.S. Stocks Join Fire Sale: Drop of 38% compares with 9% reduction for all foreigners
  • Sun Hung Kai Properties Offers 120% Mortgages in Hong Kong: Home prices have fallen 13% from September as economy slows
  • Casino Titan Packer Hives Off Macau Stake From Aussie Assets: Nobu stake, Vegas development site included in spinoff
  • Australia Added Jobs in May as Part-Time Employment Climbed: Jobless rate holds at 5.7%; economy adds 17,900 positions
  • Australian Bond Yields Drop to Record Below 2% on Brexit Concern: Swaps market shows 71% chance RBA will cut rates by year-end

In Europe, equities and fixed income have both spent the morning reacting to the Fed last night, with risk off sentiment clearly evident. Bunds have reached fresh record highs to trade above 165.50, despite supply today coming in the form of French and Spanish auctions. As such, GE 10Y yields plunged further into negative territory, to reach lows of -0.0355%. Equities have spent the session firmly in the red, with financials underperforming given the diminished expectations of a US rate hike, with Deutsche Bank shares hitting fresh record lows.

Top European News

  • SNB Holds Fire as Brexit Blues Pressure Franc at 2016 High: deposit rate held at -0.75% as intervention pledge; Brexit may cause stress in Europe, SNB president has warned
  • VW’s Europe Market Share Stuck at Five-Year Low After Scandal: carmaker’s 5-month sales rose 4.9% versus 9.7% market growth
  • Carney Hits Back on Brexit Charge as Poll Shows Leave in Lead: Carney says BOE has “a duty” to report its judgments: BBC
  • Rate-Cut Expectations Rise as BOE Holds Tight Before Brexit Vote
  • U.K. Retail-Sales Surge Boosts Hopes for Second-Quarter Growth: U.K. retail sales climbed more than forecast in May
  • Deutsche Bank Chairman Says Brexit Would Be “Disaster” for U.K
  • Schneider Would Review London Finance Base in Case of Brexit
  • CS, UBS Need Added Going-Concern Capital of ~CHF10b Each: SNB
  • Airbus to Review Goal of 50 A350 Deliveries in Late Summer

In FX, The Bloomberg Dollar Spot Index fell 0.2%, following a 0.3% decline on Wednesday. Fed officials continue to forecast two 25 basis-point rate hikes this year, after leaving the target range for the benchmark interest rate unchanged at 0.25 percent to 0.5 percent. The pound dropped toward a two-month low versus the dollar as traders awaited the BOE’s final policy meeting before the June 23 referendum. Last month, Governor Mark Carney said Brexit could lead to a U.K. recession as the central bank downgraded its growth forecasts. The currency weakened against 11 of its 16 major peers, slipping to a three-year low versus the yen. The Swiss National Bank kept its rates unchanged Thursday. Officials there have said the British vote has the potential to cause “enormous stress” in Europe. The yen jumped 1.6 percent to 104.38 a dollar, strengthening for a fifth day. The currency gained against all 31 major peers. BOJ Governor Haruhiko Kuroda said the authority will be monitoring currency movements closely, indicating a risk of intervention. “The BOJ was facing too much of a headwind in the market,” said Yunosuke Ikeda, head of Japan foreign-exchange research at Nomura Securities Co. “Ineffective easing would just question their credibility.” Russia’s ruble and South Africa’s rand both dropped 0.4 percent, the worst performers in emerging markets, as commodities declined.

In Commodities, it was all about gold which jumped to the highest level since January 2015.Bullion for immediate delivery rose over 1% or as high as $1,314 an ounce before the BIS intervened to keep the price lower at the European open. Prices have surged 23% this year as increasing global economic and political risks drive investors to havens.  Silver rose 1.1 percent as assets in exchange-traded funds backed by the precious metal climbed to a record. Nickel and copper led a decline in industrial metals. West Texas Intermediate crude fell 1.2 percent to $47.45 a barrel and Brent dropped 1.2 percent to $48.37, on speculation that easing global supply disruptions will offset a decline in U.S. crude stockpiles. Output in Canada is expected to ramp up this month after wildfires cut production. While U.S. crude inventories dropped for a fourth week to 531.5 million barrels, they remain about 33 percent above the five-year seasonal average, the U.S. Energy Information Administration said Wednesday.

Bulletin Headline Summary from RanSquawk and Bloomberg

  • The fall out of the Fed’s slightly dovish meeting and the BoJ’s inaction has seen equities softer across Europe
  • GBP trades in range with the Ipsos Mod poll’s 6% lead for the leave camp offset by the strong UK retail sales
  • Highlights today include BoE rate decision, US CPI and Philadelphia Fed Business Outlook
  • Treasuries rise on the long-end while global equities and oil drop, gold rallies back above $1300/oz on renewed growth concerns, while Fed, SNB and BOJ held policy steady.
  • Mark Carney hit back against critics who accused him of supporting the U.K.’s membership in the European Union as a new poll showed the Leave campaign holding its lead ahead of next week’s referendum
  • U.K. retail sales climbed 0.9% in May, more than economists forecast, as warm weather spurred demand for summer clothing and department stores offered promotions
  • The BOJ refrained from expanding monetary stimulus ahead of the U.K. vote on Brexit next week that could roil global markets, and before a domestic election in which the political opposition has made the bank’s NIRP an issue
  • Federal Reserve Chair Janet Yellen seems to be coming around to what her one-time rival, Lawrence Summers, has been arguing for a while: Some of the forces holding down interest rates may be long-lasting and secular
  • Indonesia’s central bank cut its benchmark interest rate for the fourth time this year, indicating its willingness to favor economic growth over stability in the face of mounting global risks
  • The Swiss National Bank kept interest rates unchanged, conserving ammunition ahead of a British vote on European Union membership that has the potential to complicate monetary policy-making the world over
  • The job market is grim on Wall Street. Except in one little corner of the financial world, where managers can’t read resumes fast enough. The turnaround expert is in hot demand

DB’s Jim Reid completes the overnight wrap

The Fed look like helping bond yields stay low in the near-term as their meeting concluded in dovish fashion with July increasingly looking like it’s off the table for the Fed. One stat showing the dovishness is that the number of committee members only seeing one hike in 2016 has gone up from 1 to 6 (out of 17) relative to March’s last round of forecasting. The median forecast is still for two hikes but there are clearly more dovish voices now. Even long standing hawk President George didn’t dissent to the statement which surprised a few. The median expected Fed Funds rate expectation for end 2017 and 2018 were cut 25bps and 62.5bps respectively with the 2018 number now at 2.375%.

Stocks hardly reacted to the statement but fell sharply in the last 30 mins of trading perhaps due to a fall in oil below $47.50 having trading as high as $48.68 just before Europe went home. The S&P 500 closed -0.2% after having been a third to a half percent higher most of the day. Treasuries yields fell after the number with 10 year (1.572%) and 2 year (0.67%) yields 4bps and 5bps lower on the day – most of which occurred post the statement. 10 year yields are another 1.5bps lower in the Asian session.

The BoJ has followed the Fed’s lead and has maintained policy at current levels overnight. Although only around a quarter of economists expected anything today (and probably even less investors), the Yen has strengthened over 1% and through 105 to the dollar for the first time since September 2014. Asian shares are on the way down for their sixth day with the Nikkei around -1.8% lower. Elsewhere the Hang Seng is down -1.75% but Chinese stocks are broadly flat. Gold is up for a 7th day.

Before the late day US sell-off and Asian weakness, European equities bounced off their lowest levels since late February as the STOXX 600 and the FTSE gained +0.97% and +0.73% respectively on the day. The gains also appeared to be broad-based as all 19 sectors in the STOXX index turned up, led by Basic Resources (+3.65%) and Retail (+1.75%). Financial services were the most actively traded sector ahead of the referendum with volumes touching 166% of the 30 day average volume.

While some of the gains can be attributed to decent economic data out of Europe and the UK (discussed later), Brexit concerns will likely continue to overshadow anything else at the moment. Today we see two crucial polls both expected to be out around 1230 BST. They are both phone polls and are from Ipsos-Mori and Survation/IG. These are credited as being the most accurate pollsters in the Scottish referendum so that and the fact they are phone polls make them key. So far phone polls are where the ‘remain’ campaign still have the upper hand notwithstanding the ICM poll early this week.

Moving onto the latest in the German 10Y yield saga, they continue in negative territory and ended yesterday at -0.010%. This number does however disguise some of the intraday moves that saw yields initially rise back above zero to an intraday high of 0.017%, before rapidly delving back into negative territory.

Now reviewing some of the data out yesterday, we saw the final May CPI numbers out of France surprise on the upside at +0.5% mom (vs. +0.3% expected; +0.3% previous) with much of the gains being driven by food price inflation (+1.0% mom). Prices were up +0.1% YoY (0.0% expected). Over in the UK we saw the labor market remain resilient despite uncertainty ahead of the upcoming referendum, with the unemployment rate for May declining to 5.0% (vs. 5.1% expected; 5.1% previous) – the lowest levels since 2005. Wages growth also ticked up as weekly earnings increased by +2.3% 3m/YoY (vs. +2.0% expected; +2.2% previous).

Heading over to the US, we saw producer prices for May tick up by +0.4% mom (+0.2% previous) and beat estimates (+0.3% expected), primarily driven by the biggest rebound in energy costs since May 2015. However, these headline numbers may be misleading as prices excluding volatile components such as food, energy and trade services actually disappointed by declining for the first time in seven months (-0.1% mom vs. +0.1% expected). Our Chief US Economist Joe Lavorgna also notes that the temporary energy-related spike in prices is likely to reverse in light of a soft growth backdrop in the US and abroad, with is certainly reflected by the mixed bag of data on the manufacturing front. While the NY Fed Empire Manufacturing survey rebounded sharply in June and clocked in well above expectations (6.01 vs. -4.90 expected), the hard industrial production numbers for May disappointed by dropping by -0.4% mom (vs. -0.2% expected). The drop in the latter was largely due to sluggish production of consumer goods (-0.7% mom), which in turn was primarily dragged lower by falling automotive output (-4.4% mom). Capacity utilization for May also fell to 74.9% (vs. 75.2% expected; 75.3% previous), which was consistent with an ongoing slowdown in aggregate demand.

Taking a look at the day ahead, we’ll start off in Europe with the UK May retail sales number which is expected to report a slowdown (expected +0.2% mom; +1.3% previous). Shortly after we will also see the final May CPI report for the Eurozone which is expected to be unchanged from the flash estimate on an annual basis (expected -0.1% YoY) and tick up from the previous month (expected +0.3% vs. 0.0% previous). We then have the BoE rate decision which should come out around midday, where the rate is expected to remain unchanged.

Over in the US the big release will be the May CPI numbers (expected +0.3% mom; +1.1% YoY), which should be closely watched for signs of renewed inflationary pressures following yesterday’s PPI data. However, Joe Lavorgna once again notes that the slack in the industrial sector suggests that recent inflationary pressure is unlikely to be sustained. Any tick up in the CPI figures will likely be due to temporary energy related effects similar to those seen in yesterday’s PPI numbers. Away from the inflation numbers we will also see the weekly initial jobless claims (expected 270k vs. 264k previous) and continuing jobless claims (expected 2140k vs. 2095k previous) numbers that should also be monitored given some of the mixed signals regarding US labor market resilience. The Philadelphia Fed Business Outlook survey for June is also due and is expected to head back into positive territory (expected +1.0 vs. -1.8 previous) and should also be closely watched after the mixed bag of industrial sector data so far. We should also get the reading of the NAHB Housing Market index which expected to largely hold stable at 59 (vs. 58 prior).

The two lunchtime Brexit phone polls already mentioned could be the key highlight today though.



i)Late  WEDNESDAY night/ THURSDAY morning: Shanghai closed DOWN 14.39 POINTS OR 0.50% / /Hang Sang closed DOWN 429.10 OR 2.10%. The Nikkei closed DOWN 485.44 POINTS OR 3.05% Australia’s all ordinaires  CLOSED UP 0.03% Chinese yuan (ONSHORE) closed DOWN at 6.5891 /Oil FELL to 47.30 dollars per barrel for WTI and 48.31 for Brent. Stocks in Europe ALL IN THE RED . Offshore yuan trades  6.6023 yuan to the dollar vs 6.5891 for onshore yuan.THE SPREAD BETWEEN ONSHORE AND OFFSHORE WIDENS A BIT AS DOLLARS LEAVE THE COUNTRY




Last night 9:30 pm est:

Gold just surpassed 1300.00.  Bitcoin surges in China.  Japanese bonds hit record -.195% on the 10 yr bond.  The Chinese yuan initially surges from its lows of 6.60 and the yen spikes higher at 104.55. The 10 yr treasury bond yield plummets to 1.55%

(courtesy zero hedge)


Currency-nado: Yen, Yuan Surge; Gold Tops $1300; Bitcoin Spikes To 28-Month Highs

The US Dollar continues to slide (after bouncing off Fed statement plunge lows), as it appears a rush to other ‘currencies’ is under way. USDJPY is plumbing new depths beyond Oct 2014’s lows (before the end of QE3 and start of QQE2), offshore Yuan is rallying (back below 6.60), gold just hit $1300 (pushing May highs back to Jan 2015 highs), and finally Bitcoin is spiking as China opens once more (now above $700), its highest since Feb 2014. Japanese bonds are at new record low yields (and Treasuries are pushing lower with 10Y at 1.55% near Feb’s flash-crash lows).

JGB yields are plumbing record lows…

With 2s5s now inverted!!

And the 10Y Treasury is near flash-crash lows…

As money flows into Yen…

And Yuan…

And it seems its not just ‘normal’ currencies, market participants are running from fiat in general…

As Bitcoin soars over $730 – 28 month highs….

And Gold tops $1300 once again…

Charts: Bloomberg

Oil crashes into the 46 dollar handle, the lowest in 5 weeks and it is now at a crucial support level:

(courtesy zero hedge)

Oil Crashes To $46 Handle – Lowest In 5 Weeks – At Crucial Support


Your early morning currency/gold and silver pricing/Asian and European bourse movements/ and interest rate settings/THURSDAY morning 7:00 am




USA/CAN 1.3000 UP .0090

Early THIS THURSDAY morning in Europe, the Euro FELL by 47 basis points, trading now WELL above the important 1.08 level FALLING to 1.1213; Europe is still reacting to deflation, announcements of massive stimulation (QE), a proxy middle east war, and the ramifications of a default at the Austrian Hypo bank, an imminent default of Greece, Glencore, Nysmark and the Ukraine, along with rising peripheral bond yield further stimulation as the EU is moving more into NIRP, and NOW THE USA’S NON tightening by FAILING TO RAISE THEIR INTEREST RATE / Last night the Shanghai composite  CLOSED DOWN 14.39 POINTS OR 0.50%   / Hang Sang CLOSED DOWN 429.10 OR 2.10%   AUSTRALIA IS HIGHER BY 0.03%/ EUROPEAN BOURSES ARE ALL IN THE RED  as they start their morning/

We are seeing that the 3 major global carry trades are being unwound. The BIGGY is the first one;

1. the total dollar global short is 9 trillion USA and as such we are now witnessing a sea of red blood on the streets as derivatives blow up with the massive rise in the rise in the dollar against all paper currencies and especially with the fall of the yuan carry trade. The emerging market which house close to 50% of the 9 trillion dollar short is feeling the massive pain as their debt is quite unmanageable.

2, the Nikkei average vs gold carry trade ( NIKKEI blowing up and the yen carry trade HAS BLOWN up/and now NIRP)

3. Short Swiss franc/long assets blew up ( Eastern European housing/Nikkei etc.

These massive carry trades are terribly offside as they are being unwound. It is causing global deflation ( we are at debt saturation already) as the world reacts to lack of demand and a scarcity of debt collateral. Bourses around the globe are reacting in kind to these events as well as the potential for a GREXIT>

The NIKKEI: this THURSDAY morning: closed DOWN 485.44 POINTS OR 3.05% 

Trading from Europe and Asia:

2/ CHINESE BOURSES / : Hang Sang CLOSED DOWN 429.10 POINTS OR 2.10% . ,Shanghai CLOSED DOWN 14.39 POINTS OR 0.50% / Australia BOURSE IN THE GREEN: (RESOURCES UP)/Nikkei (Japan) CLOSED IN THE RED/India’s Sensex IN THE RED

Gold very early morning trading: $1304.60


Early THURSDAY morning USA 10 year bond yield: 1.564% !!! DOWN 4 in basis points from TUESDAY night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%. The 30 yr bond yield FALLS to 2.394 DOWN 4 in basis points from WEDNESDAY night. (SPREAD GOES AGAINST THE BANKS)

USA dollar index early WEDNESDAY morning: 94.98 UP 37 CENTS from WEDNESDAY’s close.

This ends early morning numbers THURSDAY MORNING



And now your closing THURSDAY NUMBERS

Portuguese 10 year bond yield:  3.42% UP 7 in basis points from WEDNESDAY

JAPANESE BOND YIELD: -0.21% DOWN 4  in   basis points from WEDNESDAY

SPANISH 10 YR BOND YIELD:1.60%  UP  3 IN basis points from WEDNESDAY

ITALIAN 10 YR BOND YIELD: 1.54  UP 4 IN basis points from WEDNESDAY

the Italian 10 yr bond yield is trading 6 points lower than Spain.





Closing currency crosses for THURSDAY night/USA DOLLAR INDEX/USA 10 YR BOND YIELD/3:30 PM


Euro/USA 1.1235 DOWN .0026 (Euro =DOWN 26 basis points/ represents to DRAGHI A COMPLETE POLICY FAILURE/reacting to dovish YELLEN/ANOTHER FALL IN USA;YEN CROSS TODAY

USA/Japan: 104.31 DOWN 1.577 (Yen UP 158 basis points )

Great Britain/USA 1.4201 UP.0009 ( Pound UP 9 basis points/(HUGE BREXIT CONCERN)

USA/Canada 1.2956- UP 0.0045 (Canadian dollar DOWN 45 basis points  AS OIL FELL  (WTI AT $46.22).


This afternoon, the Euro was DOWN by 26 basis points to trade at 1.1235

The Yen ROSE to 104.31 for a GAIN of 157 basis points as NIRP is STILL a big failure for the Japanese central bank/

The POUND was UP 9 basis points, trading at 1.4201( BREXIT FEARS STILL LURKING )

The Canadian dollar FELL by 45 basis points to 1.2956, WITH WTI OIL AT:  $46.26

The USA/Yuan closed at 6.5860/

the 10 yr Japanese bond yield closed at -.21% DOWN 4  IN BASIS  points in yield/

Your closing 10 yr USA bond yield: DOWN 3 IN basis points from WEDNESDAY at 1.561% //trading well below the resistance level of 2.27-2.32%)

USA 30 yr bond yield: 2.381 DOWN 4 in basis points on the day ( HUGE POLICY ERROR)


Your closing USA dollar index, 94.56 DOWN 5 CENTS  ON THE DAY/4 PM

Your closing bourses for Europe and the Dow along with the USA dollar index closing and interest rates for THURSDAY

London:  CLOSED DOWN 16.32 OR 0.27%
German Dax :CLOSED DOWN 56.24 OR  0.59%
Paris Cac  CLOSED DOWN 18.57  OR 0.45%
Spain IBEX CLOSED DOWN 50.90 OR 0.62%
Italian MIB: CLOSED DOWN 162.07 OR 0.98%

The Dow was UP 92.93  points or 0.53%

NASDAQ UP 9.98 points or 0.18%
WTI Oil price; 46.21 at 4:30 pm;

Brent Oil: 47.22




This ends the stock indices, oil price, currency crosses and interest rate closes for today

Closing Price for Oil, 5 pm/and 10 year USA interest rate:


BRENT: 47.03

USA 10 YR BOND YIELD: 1.5771% (did not buy the rally)

USA DOLLAR INDEX: 94.59 down 0 cents

The British pound at 5 pm: Great Britain Pound/USA: 1.42117 up .0021  or 21 basis pts.

German 10 yr bond yield at 5 pm: -.014%


And now your more important USA stories which will influence the price of gold/silver



From Entropy To Ecstasy – A Market In Chaos



This morning, the 10 yr USA bond yield collapses to 1.5244 as the entire world’s bourses were terribly underwater:

(courtesy zero hedge)


Bond Yields Crash Below Feb ‘Flash-Crash’ Lows As US Stocks Lose 2016 Gains

10Y Treasury yields just broke below February’s flash-crash lows and ar enow trading back to their lowest since August 2012 with the yield curve also collapsing (2s30s down 6bps to 168bps – lowest since Jan 08). US equity markets are also tanking, led by banks – as contagion spreads – crashing back to unchanged year-to-date.


Bond yields are collapsing….


and the curve is flattest since Jan 2008…


and US equities have basically erased all their 2016 gains…


and Gold and The USD Index are surging…



Initial jobless claims rise to 277,000, higher than expected, but it is the Fed’s own Labour Market Index that collapsed to negative 4.3 and that indicates recession:

(courtesy zero hedge)

Initial Jobless Claims Still Decoupled From Hypocritical Fed’s “Experimental” Labor Market Index Collapse


The following is a big headache for the Fed as now “core” inflation i.e. inflation ex food ex energy rose above the Fed’s comfort zone of 2%.  The big problem:  imputed rent!
(courtesy zero hedge)

Highest Shelter Inflation Since September 2007 Means More Headaches For A Trapped Fed

(courtesy zero hedge)/Philly mfg index)

Philly Fed Jumps On Surge In Prices Paid; Jobs, New Orders, & “Hope” Plunge

The jump in Philly Fed (from -1.8 to +4.7, beating expectations of +1.0) is considerably less exuberant than the mainstream would like to believe. The biggest driver of this jump back into ‘expansion’ was a huge surge in “Prices Paid” to the highest since Oct 2014. We are not sure how that is such great news as Prices Received collapsed. Furthermore, number of employees tumbled, New Orders fell to 4 month lows, and average workweek remains deep in contraction. Additionally, ‘Hope’ fell as the six month outlook dropped to 3 month lows. But apart from all that, yay… Philly Fed is up.

Is this good news?


or this?

The following is a terrific commentary from our very popular Michael Snyder who gives us 15 major facts that show that the USA economy is imploding:
(courtesy Michael Snyder/Economic Collapse Blog)

15 Facts About The Imploding U.S. Economy That The Mainstream Media Doesn’t Want You To See

Submitted by Michael Snyder via The Economic Collapse blog,

You are about to see undeniable evidence that the U.S. economy has been slowing down for quite some time.  And it is vital that we focus on the facts, because all over the Internet you are going to find lots and lots of people that have opinions about what is going on with the economy.  And of course the mainstream media is always trying to spin things to make Barack Obama and Hillary Clinton look good, because those that work in the mainstream media are far more liberal than the American population as a whole.  It is true that I also have my own opinions, but as an attorney I learned that opinions are not any good unless you have facts to back them up.  So please allow me a few moments to share with you evidence that clearly demonstrates that we have already entered a major economic slowdown.  The following are 15 facts about the imploding U.S. economy that the mainstream media doesn’t want you to see…

1. Industrial production has now declined for nine months in a row.  We have never seen this happen outside of a recession in all of U.S. history.

2. U.S. commercial bankruptcies have risen on a year over year basis for seven months in a row and are now up51 percent since September.

3. The delinquency rate on commercial and industrial loans has been rising since January 2015.

4. Total business sales in the United States have been steadily dropping since the middle of 2014.  No, I did not say 2015.  Total business sales have been in decline for nearly two years now, and we just found out that they dropped again

Total business sales in the US did in April what they’ve been doing since July 2014: they dropped: -2.9% from a year ago, to $1.28 trillion (not adjusted for seasonal differences and price changes), the Censuses Bureau reported on Tuesday. That’s where sales had been in April 2013!

5. U.S. factory orders have been dropping for 18 months in a row.

6. The Cass Shipping Index has been falling on a year over year basis for 14 consecutive months.

7. U.S. coal production has dropped to the lowest level in 35 years.

8. Goldman Sachs has its own internal tracker of the U.S. economy, and it has fallen to the lowest level since the last recession.

9. JPMorgan’s “recession indicators” have risen to the highest level that we have seen since the last recession.

10. Federal tax receipts and state tax receipts usually both start to fall as we enter a new recession, and that is precisely what is taking place right now.

11. The Federal Reserve’s Labor Market Conditions Index has been falling for five months in a row.

12. The employment numbers that the government released for last month were the worst that we have seen in six years.

13. According to Challenger, Gray & Christmas, layoff announcements at major firms are running 24 percent higher this year than they were at this time last year.

14. Online job postings on the business networking site LinkedIn have been declining steadily since Februaryafter 73 months in a row of growth.

15. The number of temporary workers in the United States peaked and started falling precipitously before the recession of 2001 even started.  The exact same thing happened just prior to the beginning of the 2008 recession.  So would it surprise you to learn that the number of temporary workers in the United States peaked in December and has fallen dramatically since then?

Earlier today, we learned that two of our biggest corporations will be laying off even more workers.  Bank of America, which is holding more of our money than any other bank in the country, has announced that it is going to be cutting about 8,000 more workers

Bank of America is expected to reduce staffing in its consumer banking division by as many as 8,000 more jobs.


The nation’s largest retail bank by deposits has already reduced the staffing in its consumer division from more than 100,000 in 2009 to about 68,400 as of the end of the first quarter of 2016, said Thong Nguyen, Bank of America’s president of retail banking and co-head of consumer banking at the Morgan Stanley Financials Conference Tuesday.

And Wal-Mart has announced that it is going to be eliminating “back-office accounting jobs” at approximately 500 locations

Walmart is going to cut some back-office accounting jobs at about 500 stores in a bid to become more efficient.


The job cuts will occur mostly at stores mostly in the West and involve accounting and invoicing workers, says spokesman Kory Lundberg. Instead, bookkeeping functions will be switched to Walmart’s home office in Bentonville, Ark. Cash at the stores will be counted by machine.

Day after day we are hearing about more layoffs like this.  So why would this be happening if the U.S. economy truly was in “recovery mode”?

Even with how manipulated the GDP numbers are these days, Barack Obama is on course to be the only president in all of U.S. history to never have a single year when the economy grew by at least 3 percent.  The truth is that our economy has been stuck in the mud ever since the end of the last recession, and now a major new downturn has clearly already begun.

And you want to know who else realizes this?

Foreign investors do.

Last month, foreign investors dumped U.S. debt at the fastest pace ever recorded

Foreign investors sold a record amount of U.S. Treasury bonds and notes for the month of April, according to U.S. Treasury Department data on Wednesday, as investors priced in a few more rate increases by the Federal Reserve this year.


Foreigners sold $74.6 billion in U.S. Treasury debt in the month, after purchases of $23.6 billion in March. April’s outflow was the largest since the U.S. Treasury Department started recording Treasury debt transactions in January 1978.

There is no debate any longer – the next economic crisis is already here.  This is so abundantly obvious at this point that even George Soros has been feverishly dumping stocks and buying gold.

We can argue about whether the U.S. economy started turning down in late 2015, early 2015 or late 2014, and it is good to have those debates.

But at the end of the day, what is far more important is what is ahead.  Fortunately, our downturn has been fairly gradual so far, and let us hope that it stays that way for as long as possible.

In much of the rest of the world, things are already in full-blown panic mode.  For instance, Venezuela was once the wealthiest nation in South America, but now people are literally hunting cats and dogs for food.

Absent a major “black swan event” of some sort, we won’t see that happening in the United States for at least a while yet, but without a doubt we are steamrolling toward a major economic depression.

Unfortunately for all of us, there isn’t anything that any of our politicians are going to be able to do to stop it.

That is all for today
I will see you tomorrow
Expect more raids tomorrow

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