The Market's Schizophrenic Reaction To Payrolls

Tyler Durden's picture

UPDATE: S&P futures collapsing quickly - now down from Payrolls

The initial kneejerk reaction in stocks was oddly 'good-is-good' higher after the better-than-expected headline data on payrolls - which perhaps signalled that Taper is nearer - but FX, bond, and precious metals markets were clearly in Taper-On mode. Treasury yields cracked 13bps higher, Gold and Silver dropped 1-2%, outdates for Eurodollar futures dropped notably, and the USD jumped around 0.5% almost uniformly. As an illiquid equity market soaks in the reality, some of that initial surge is fading...

Stocks jump...

 

but everything else cracks in a distinctly Taper-Off mode...