Weekend Report: Yen Back At 1990 Support, Basis Trade Moves Even Higher, 1,670-Year Old Silver Hoard Found

When Japan goes, the whole fiat system goes with it.

• 5Y note spread widens to 83 cents, 2Y to 79 cents, fueling new record high short positions in both 5Y and 2Y note futures.

• Yen is getting very wobbly, showing the BoJ at war with the forex markets.

• 1,670 year old silver hoard found in Lod (Lydda). But what is a bitcoin hoard? How do you find that and what do you do with it?

5Y Note Spread Widens to 83 Cents, 2Y to 79

The swollen basis trade continues in 5Y notes, the spread getting even wider to 83 cents now, see below.

The amount of short positions on 5Y notes is still right near all time records. In addition to that, the basis in the 2Y notes between spot and futures exploded on Friday to 79 cents, up from 9 cents on Thursday.

As a result (probably) the amount of short positions in 2Y Notes has hit still a new record high of 1,930,187.

So we've got two very heavy basis trades going on simultaneously now, one in 2Y Notes and the other in 5Y.

While this is happening, overnight repo volume has poked through $2 trillion again to $2.035 trillion. Much of that money funds these short positions nightly.