Interesting action in the AM. The SP500 was down big, but the 10yr yield was up (bonds sold off). The conundrum maintained itself until a little after 1pm. (I call it a conundrum because when the markets are down big, its risk off, and money should flow to treasuries.)
The markets climbed their way back until the unwind of the conundrum took place at 1pm.
The only scheduled economic activity at 1pm was the 3yr Note Auction. Potential geopolitical catalysts that started about 10-11 hours ago include:
1. Turkey police entering Takisim square to disburse the protesters
2. Privatization concerns (via weak demand) surrounding Greece
Not sure if the above are strong reasons, but the morning catalyst for the decline was the "lack-of-additional-stimulus" from the BOJ, which in my eyes was complete bullshit. At the moment, the markets want reasons, whatever they may be.
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