Treasury Butterfly Collapses In Replay Of Market Plunge Action
While nobody gives a rat ass what assorted Stuxnet-infected vacuum tubes are doing with equities any more, the real drama is in the 2s10s30s, where the butterfly has just plunged by over 10% in this morning alone! This is a massive move, driven by the collapse in the 10 year, which at last check was trading at 2.37%, as the only trade is and continues to be the frontrunning of Benny and the Inkjets. The last time we had a move as dramatic and rapid as this was in the November 2008 equity plunge, and the March 2009 decade low. In other words, the bond market is now trading only based on what Pimco says the Fed will do, while stocks are pricing in mild to quite mild hyperinflation, as some administration idiot has floated the idea of $7 trillion in QE. To quote W, make no mistake - $7 trillion in QE would be the proverbial Shazam moment, where D.C. can officially change its name to Harare.
And here is what a completely broken market looks like (again). All correlations are busted now that even DE Shaw and the stat arb quants have ceased trading.