“You ain’t a beauty, but hey you’re alright,” for now as I refer to the US$ where the euro heavy $ index is up for a 13th straight day for the 1st time ever. As gold is currently being treated as an anti $ asset, (its an anti ALL fiat currency asset), coincident with the $ rally the RSI in gold is at the lowest level since Sept/Oct ’08. As expected, the Greek election Part 2 will be held on June 17th. We now have another month to debate whether Greece stays or goes and if they go, how messy it will be for both them (not in doubt) and the rest of us (we’ll see). The Greek PSI bond maturing on Feb 24th, 2023 is down again to 14.5 cents on the euro. Italy’s 10 yr yield touched 6% for the 1st time since Jan this morning but backed off and Spanish yields are lower after the Mon-Tues spike. The euro basis swap is trading above 50 bps for the 1st time in 4 weeks but because of $1t of LTRO money, it’s well below the Nov high of 158. Portugal’s Q1 unemployment rate rose to a new euro high for them at 14.9%. In the UK, jobless claims unexpectedly fell. In the US, thanks to a new low in the avg 30 yr mortgage rate, refi apps rose 13% to an 11 week high but purchases fell by 2.4%.
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