Frustrating Morning So Far

Not a lot to report yet here.  C had pretty horrid earnings and missed on both the top and bottom line while playing the loan loss reserve game.  Pandit called the economy challenging and the GSE's said C is still selling MBS that violates reps and warranties.

Something is up with bonds this morning as they put a big intraday swing to the downside and the 10 year is continuing its slide.  TIC data was positive but did show China lightening up their holdings more.

I can't help but think today's price action is simply a chance to unload unwanted inventory before we slide down.  We never priced in the latest PBOC reserve raise nor the fact that Shanghai is now down about 15% the past two months.

Very odd, annoying market that is rewarding bad behavior.  Hope to look through the C earnings later and see what it looks like behind the numbers.  Lastly the DXY looks like it's trying to bounce off very key support.

Frustrating Morning So Far