Bonds And Bullion Crunched, Stocks Unch'd
Ahead of tomorrow's all-important facade of the NFP print, US equity markets traded on very low volume in the 2nd narrowest range in 6 months. Sectors were a litte more disprsed with rate-sensitive names hurt and Utes underperforming. The real story of the day was the "Taper-On" trades in Treasuries, precious metals, and the USD. The belly of the Treasury curve smashed another 10-11bps higher (now up 21bps from Friday's pre-Obama speech) as the 10Y trod water at 2.98% from the European close only to jump up to 2.99% into the close. As we crossed the US open, gold and silver were summarily punched lower, down 1-2% on the week as the USD surged following Draghi's chatter and better macro data this morning. Credit markets were decidely more nervous going into the close than stocks. Gold and the S&P 500 are now exactly equal with each other and unchanged from the 6/18 FOMC "Taper" moment (and Silver is up 7%).
The S&P 500 and gold have danced around one another but are now ending exactly unchanged from the 6/18 "Taper" FOMC...
On the day, it was all about bonds and gold (and the USD), as stocks did nothing...
The week in Treasuries...
But credit markets are not buying the equity complacency!!!
Oh and about that "steeper" yield curve providing all that NIM for banks???
Bonus Chart: Is This As Good As The Macro Is Gonna Get?
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