Jobs Reaction: USD & Bond Yields Drop; Gold & Silver Pop; Stocks Flip-Flop

Tyler Durden's picture

Markets, it would seem, are choosing to ignore Mark Zandi's sage advice this morning - when faced with yet another example of his ineptly over-optimistic extrapolation "ignore this number - it's going to go away." Stocks had slowly melted up overnight with S&P futures almost back to unchanged on the year and that gain was instantly vaporized on the NFP print - but shortly after bagen to recover losses. Treasury yields have collapsed with 10Y at 2.88%. Gold and silver - which were twitchy going into the number  - have surged higher with gold at $1240. The USD is being sold with JPY and EUR strength. It seems the recognition that bad news is bad news in the new "Yellen collar" world is growing on investors. Of course this can change any second...

Initial kneejerk


then bounce to VWAP...


Treasury traders are not amused... and not bouncing...


Gold - which tanked going into the number, is jumping back to the year's highs...


And the USD is offered...


Charts: Bloomberg

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Racer's picture

You omitted 'nano' before the 'second'

Serfs Up's picture



The only 'reaction' I am interested in right now is the one at ADP where they are scrambling to force fit their data back into the BLS "model" because, you know, because in the contest between measured and sampled data, the sampled data is the correct version.

At least in Pax Americana.

SAT 800's picture

Today you have a vertical "waterfall" in Silver price that looks exactly like the one you had in Gold a few days ago; only going upwards; also keyed on the New York Opening. But I don't suppose you'll be hyperventilating about bad people manipulating your precious today. Two things that are the result of delusional thinking and a cult that supports the members fantasy; one, global warming, two precious metals manipulation. have a nice day.

Ulterior's picture

numbers are hugely pointing USD to go south, still someone is selling into gold and buying USD

Dr. Engali's picture

PMs will be smacked down when the time is right. They won't be permitted to appreciate until the system blows up.

devo's picture

Yeah dude, because they didn't appreciate for 13 years straight or anything...

Dr. Engali's picture

They appreciated because the paper pushers allowed them to appreciate. The system needed gold so they allowed the price to appreciate and draw all the gold off the streets at the " we buy gold here" shops. Now that they have it in a price range that they feel comfortable with they will keep a collar on it. They have unlimited paper to manipulate the price of gold, until PMs break that grip this is the system we have.....or maybe you haven't been paying attention lately.

devo's picture

I pay attention, but all that talk is nonsense and the major reason people hate gold bugs/conspiracy dorks and the bunker-dweller mentality. The price blows because everyone believes in the recovery and people got majorly burned at $1800, so they're afraid to dip their toes in here. Of course this is exactly when they should be buying...

Dr. Engali's picture

Sure it's a conspiracy that 4000 contracts are sold in an illiquid market to smack gold back down. In any other market those contracts would be sold over time in order to get best price. By all means go on and keep believing that they don't manipulate the market . PMs will be smacked down. 

devo's picture

I've seen 4,000 contracts bought at market price, too, and the subsequent price spike. That never gets reported on bunker-dwelling websites.

Look, I like gold and silver and actually bought the recent dip unlike many bugs who claim to "back up the truck" yet never buy, but don't tarnish (you see what I did there?) PM supporters with this crap you read on backwoods websites. You're a sheeple of the conspiracy blogs, which isn't any better than being a joe sixpack sheeple.


Temporalist's picture

How the fuck do you know if people buy or not? 

devo's picture

Because the ebay auctions have like 2 bids on those days, and all the dealers are sending me emails begging to buy. If bunker-dwellers were "backing up the truck" that wouldn't have been happening, nor would the price have been plummeting. Deduction 101.

AvoidingTaxation's picture

I bought 1/2 Ounce Bahamas + 20 CHF + 20 FRF in gold.... Hoping for some 1 KG Silber bars yummie. On the market is quite liquid, you can buy inbetween the bank physical spread.

SAT 800's picture

What you are referring to has an effect for an hour or two and is used by the people who created it to make their own buy price; it has no effect on the average of price for the month, for instance. It's completely impossible to "control" the world metals price; and what is impossible doesn't happen. A significant number of people are no longer worried about financial disasters and have re-allocated funds accordingly; that's the facts.

Bastiat's picture

They may have unlimited paper but they don't have unlimited credibility or unlimited gold to deliver.  What is it 80 owners for every ounce of Comes gold now?

devo's picture

Until I can't buy gold or silver near the paper price and have it delievered, this is all nonsense. I bought silver off ebay this week for 23 bucks. $3 premium is basically spot after the seller settles his auction fees.

Bastiat's picture

If you think the fundamentals are nonsense, why are you buying?

devo's picture

I don't think the fundamentals are nonsense; it's the manipulated market and "paper vs physical" talk that is nonsense. Those aren't the fundamentals. Put down the blogs and Jim Rickards' novels and think it through.

SAT 800's picture

The basic problem is that you don't understand what the Comex is and what it does. It's the not the store where you buy potatoes; it's a future's market. There has always, always, at the lowest price in the last twenty years, been many, many more contracts than gold or silver available for delivery; for one simple reason; the Comex is not about delivery; it's about contracts. You've been fed a load of rubbish by the internet wisdom. there is no paper price or physical price; what you're constantly commenting on is the price for small lots and manufactured items like coins; which are always higher in price; because the manufacturers don't work for free; and secondly, because they're fools to buy them. At any day of the week you can buy Silver Bullion at for the same price it's listed at on the comex spot. Your namesake would not have been so easily confused and mislead.

El Hosel's picture

Gold went from $300 to $1800, now that move has retraced half its gain... The way Markets used to work.

SAT 800's picture

Exactly. this makes nonsense of the manipulators fantasy world; but they just ignore the facts and motor on.

disabledvet's picture

The thigh bone's collected to the...leg bone. The leg bones connect to the...foot bone. The foot bone's connected to the...

El Hosel's picture

Gold and Silver "should" go to the moon on this..  The Billy Idol Jobs report says,  Moar Moar Moar.

iLiquid's picture

Jobs reaction?  You mean Jobless?

El Hosel's picture

DOW should close down 400 on this crap...  When that happens we have a Market again, at least for that day.

madbraz's picture


Flakmeister's picture

Bond shorts just got their faces ripped to shreds....

At least gold is getting a bid...

Boston's picture

Bond shorts?

I've been screaming here about getting long at 3.0% on the 10y for weeks. Today is a good day!

Btw, the CAD continues to melt down (about to break below US $0.90)......not getting the coverage it deserves.

AvoidingTaxation's picture

True, what is going on? Why the CAD is doing so badly? I mean, it is fiat like the USD, but perhaps a little bit better.

El Hosel's picture

The Machine had to apply a weak number to get "the market" reaction they want.... I don't think anybody can buy these numbers anymore, the team will have its hands full today. 

Cramers take: bullish for stocks and housing! SELL SELL SELL

Sufiy's picture

Alasdair Macleod: The World Of Bubbles, Currency Crisis And Gold

 Alasdair Macleod has come out with interesting new way to measure the potential value of Gold. Nobody is interested in Gold now ... apart from China which was buying the record amount of Gold last year. Bitcoin crowd are still happy chasing the Bubbles and 10Y Yield is above 3.0% today again. Interest Rates based derivatives are coming into the picture again.

Musashi Miyamoto's picture

BTC grazing lower Resistance at just over 900. Check out the triangle on the 12hour chart. -

Temporalist's picture

Incidentally with gold up Yahoo finance once again has a front page article about the "Lessons of Gold's Collapse" LOL

firstdivision's picture

Love the number so that they can get that yield down on LTD