So the most deadly terror attack in Britain in 12 years, US economic data collapses, a terrible T-Bill auction, and Trump's budget hits... sending stocks to record highs...

Stocks bounced back for the 4th day following the Trump Dump, reaching back near record highs...

On another short squeeze open...

And no volume...

As US macro data crashed to its weakest since Feb 2016 (when the world was worried about global recession)...

And while Hard data has been weak, it is the 'soft' data that is now collapsing (surprise!!)

But of course remember that The Fed is "data dependent" - oh wait!

VIX was smashed back to 10.5 as the S&P manage to briefly top 2400...

Homebuilders have been on quite a tear but new home sales may be a drag...

Treasury yields rose across the complex by a very consistent 5bps (while 2Y outperformed amid a solid auction)...

UST yields spiked to their highest level in a week after the weekly 4-week bill auction and the monthly 52-week bill auction both tailed by more than 1bp. This was the first 4-week auction to tail by more than 1bp since December and the first 52-week since September 2015, according to Stone & McCarthy.

30Y remains well below 3.00%...

The rise in yields prompted a USD rally, temporarily capping gains in equities as markets re-positioned before Wednesday’s FOMC meeting minutes. Crude prices held gains even as the U.S. mulled selling off portions of the Strategic Petroleum Reserve in fiscal 2018.

For just the 2nd day in the last two weeks, the dollar index rallied,

spiking higher as EUR/USD dropped after Europe closed and the auction impact flowed through... (NOTE we saw the same price action last Wednesday and the FOMC Minutes are tomorrow)

EUR, JPY, and GBP all weakened notably as the yield spike flowed through...

The dollar spike sent precious metals lower - Gold testing 1250...

WTI held on to gains despite Trump budget talk of selling the Strategic Petroleum Reserve...

Bitcoin tumbled late on yesterday but, despite a stronger dollar, virtual speculators bought the dip sending the cryptocurrency to a new record high...