VIX vs Stocks vs Credit vs Rates

Tyler Durden's picture

Starting at around 10amET this morning, the 'markets' began to get a little more odd than normal. The glimpses we got overnight are playing out in FX, Treasury, and credit markets - i.e. they are trading in a notably risk-off mode, recognizing the doubt over economic recovery and perhaps even concerns at the sequester. However, while it may not come as a huge surprise to many, equities have no fear and as bond yields test the day's lows, S&P 500 futures test the day's highs... recoupling on the week. All is well...

 

 

and summing it all up - Capital Context's ETF Arb (left) and cross-asset-class CONTEXT model indiate just how divergent today's unreality is...

 

Though we do note that Treasuries and stocks are merely recoupling today on the week...

 

Charts: Bloomberg and Capital Context