Bonds Take the Day Off. Yields Kept Rising Abroad.

Tuesday's hotter inflation report pushed the two-year Treasury yield up 17 basis points to 4.73%. The 10-year closed near 4.98% after trading above 5%.

Cash Treasurys are closed today for Veterans Day. Stocks trade normal hours.

Yields kept rising overseas. Japan's 10-year yield rose 11 basis points to about 2.8%, and Treasury futures edged lower.

Market Implication

Stocks get a full session to answer Tuesday's report, while cash bonds get no say until Thursday. With overseas yields still rising, today's rate signal comes from Tokyo and futures rather than from cash Treasurys. Any rebound in growth stocks happens with the two-year's 17-basis-point jump still standing. The bond market's silence is a delay, not a verdict.

CoreWeave Wants Its Customers to Fund the Build

CoreWeave (CRWV) was indicated about 15% higher before the open, above its highest price after hours Tuesday.

CoreWeave expects about $9 billion of customer prepayments and deposits over the next three months. It plans to fund most remaining capital spending with delayed-draw loans tied to specific customer contracts.

It also said it does not intend to issue more parent-level unsecured debt through 2027 at current yields.

That plan has to cover a $37 billion to $39 billion capital budget this year and an interest bill that reached $846 million last quarter. Last Friday, CoreWeave's 2032 notes still yielded more than 16% as the stock bounced 6%.

Private buyouts are reaching for a similar idea. Pizza Hut is preparing about $1 billion of bonds backed by franchise fees to repay the financing behind LongRange Capital's buyout, Bloomberg reported.

Structural Setup

CoreWeave is moving its funding from its own credit to its customers' commitments. Prepayments and contract-linked loans let it keep building without paying a 16% yield on new unsecured debt. That makes customer payments, as much as interest rates, the variable that sets its funding cost. The customer has become the credit.

Chips Got the Overnight Bid. Bitcoin Funds Kept Selling.

Nvidia (NVDA) was indicated about 4% higher after falling 5.5% Tuesday. Micron (MU), AMD (AMD) and Taiwan Semiconductor (TSM) were indicated 5% to 7% higher.

Bitcoin sat it out near $73,800. U.S. spot bitcoin ETFs lost about $95 million Tuesday, a fourth straight day of outflows, by SoSoValue's count. The funds are on track for their first year of net outflows.

MSCI (MSCI) publishes its November index review after today's close. A test run of its new rule on non-operating companies, using May data, put Strategy (MSTR) on the deletion list. The watch list, which holds first-time failures, did not include it. Any removals take effect after the Nov. 30 close.

Strategy pays for its bitcoin largely by selling stock.

Sector Read

The overnight bid went to chipmakers and skipped the coin whose largest corporate buyer funds itself through its share price. Index membership underpins demand for that stock, and the stock is how Strategy buys bitcoin. Tonight's list decides whether that route keeps its index buyers. For bitcoin's flows, MSCI matters more this week than the chip rally.

Western Union Walked Away Over California's Terms

Western Union (WU) walked away from its $16-a-share cash deal for Intermex (IMXI) after California's financial regulator delivered final conditions Tuesday evening. Western Union said the conditions would have forced material changes to its business model.

The regulator called its decision a conditional approval. Neither side pays a termination fee, and the federal antitrust waiting period had already expired.

Intermex closed Tuesday at $6.50, 59% below the deal price, before the termination was disclosed. In thin pre-market trading it fell as low as $4.70, then recovered above that close.

The CFTC warned Kalshi of possible charges over how it notified regulators of new contracts, Politico reported, citing one person. Kalshi called it a procedural error involving a handful of contracts, and no charges have been filed. On Monday, Kalshi joined Coinbase (COIN) and four trading firms in seeking to file a brief backing the CFTC's approval of single-stock perpetual futures.

Watch Signal

Intermex shows regulatory risk the market had largely priced, with a deep discount before the news and a pre-market drop that did not hold. Kalshi's exposure runs the other way. It is defending the CFTC's authority in one court while the agency weighs charges against it. If the CFTC files, the regulator Kalshi is backing in court becomes the one charging it.

The 10-Year Found Different Buyers at 5%

Tuesday's $42 billion sale of new 10-year notes cleared at 5.020%. That was below October's 5.300%. The bigger change was who bought.

Indirect bidders, the group that includes foreign buyers, took 61.2% of competitive awards, down from 80.3% at October's reopening. Direct bidders took 29.0%, up from 17.1%. Dealers were left with 9.8%, up from 2.5%.

Fed Vice Chair for Supervision Michelle Bowman said Tuesday that inflation pressures are persisting while the labor market firms. She added that clearer AI financing conditions would raise her confidence in future policy decisions.

The Read

Reading the 10-year through the Fed's next move used to be enough. Tuesday's sale cleared with a smaller indirect share, so direct bidders and dealers absorbed more of the supply. If that mix holds, term yields can rise without any new move from the Fed. Bowman's remark puts AI borrowers, who pay those yields, on the Fed's list too.

Economic Data: None today. Thursday: weekly jobless claims and a $25 billion 30-year bond sale. Friday: October producer prices.

Fed Speakers: Thursday: Governor Michael Barr and Chicago's Austan Goolsbee. Friday: Bowman and Boston's Susan Collins.

Earnings: Today: Franco-Nevada (FNV). Thursday: Nebius (NBIS) before the open; Cisco (CSCO) and Applied Materials (AMAT) after the close. Nvidia reports Nov. 17.

Overnight: Kospi +2.6% | Nikkei +1.3% | Shanghai +0.5% | FTSE +0.4% | DAX flat

Stocks Answer First. Bonds Answer Thursday.

The AI rebound rests on customers paying ahead. The rates under it moved the other way, and the 10-year sale needed different buyers to clear at 5%.

Bond trading reopens Thursday, and CoreWeave's 2032 notes are the cleanest read. If the stock keeps a double-digit gain while those notes still yield above 16%, equity buyers are pricing growth that lenders still won't fund at these rates.