Bonds Best, Stocks Rest, And USD Depressed

Tyler Durden's picture

Following Friday's ugliness in bond-land, today saw the Treasury market's best day in around 13 months as UST are starting to look a lot like JGBs in terms of volatility regime - which really won't help collateral. Gold and silver also had a positive day (both up around 1.1%) as the USD leaked 0.3% lower (led by a surging AUD that recovered a lot of Friday's gap-down losses). The Nasdaq underperformed on the day (as AAPL tumbled 3% from pre-open highs) but remains in the green (just) post-FOMC while the Dow, S&P, and Trannies are all holding red post-FOMC. Discretionary and Financials are now in the green post-FOMC as Builders continue their open-high-close-low regime (now down 7% from FOMC). WTI trod water around $103. Credit markets modestly outperformed on the day but remain significantly below pre-FOMC levels as stocks have almost regained it and VIX slid back to its lowest in 6 weeks (under 15%) though slipped higher from the open today.

 

The entire treasury complex rallied aggressively today...

 

with the underperforming belly of the last few days outperforming the most today...

 

The Nasdaq is just in the green since FOMC but the rest (aside from RUT) remain modestly in the red...

 

And sectorally, financials (despite today's FDIC / BIS / Dodd-Frank news) are back above the FOMC highs (because all anyone can think about is NIM - not the MtM losses they are getting hit with) and builders once again open high and close low...

 

The outperformance of the shorts post-FOMC has been rebuffed and they have been unwound en masse back above the FOMC levels...

 

The USD dropped 0.3% (as the AUD surged)... Gold jumped and flatlined after EU close as did stocks...

 

On a side note, S&P 500 futures volume was around half that of Friday's!!

 

Charts: Bloomberg and Capital Context