Overnight futures traded modestly lower with another weak auction in Japan but bounced back to unchanged after a German 15yr auction went off without a hitch. I don’t want to overstate the volatility we’re talking about 20pts in S&P futures, less than 0.5%, but this is definitely the first time over the last decade where I can recall markets paying any meaningful attention to auctions. It also highlights that in general things are pretty quiet. This morning while I was on Yahoo Finance with Brad Smith I think he coined the term “hyper-waffling” which may ultimately describe what’s ahead of us this summer.

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