Slow news day to begin with. However some birds are chirping in my ear that a private equity/hedge fund is teetering and there are dire discussions going on to have the industry come in and bailout the fund at the harm of the investors.
Washington has turned a deaf ear to this big contributor because of the “poor optics” during an election year.
The ailing energy patch may be the hill this fund will choose to die on, sources tell me.
My guess on this is that we will have some announcement at 5PM EDT today to allow markets to clear before a Sunday night opening in Asia.
If not it could mean the jawboning reorg talks will go into the weekend.
Let’s see what we hear later today.
Friday the 13th brings red to the Bloomberg screen as Japan’s central bank took a day off from weakening the yen with its intervention.
The US 10-year yield fell to 1.7% as sovereign investors i.e. Japan flock into higher rates as its own government bonds go negative out on the curve.
Between the Bank of Japan and institutional and individual Japan investors have purchased as much as ¥7.3 trillion in February and March.
The latest 10-year auction had the largest crowd of buyers — 78% Asian buyers — in the last decade forcing the yield down to six month lows.