Bond Yields Plunge Most In 10 Months As Stocks BTFEscalation

Tyler Durden's picture

After surging all week on the worst volume of the year, US equities hit an air-pocket of reality this morning as last night's news of a Russian 'invasion' was confirmed by Ukraine (and UK reporters), denied by Russia, and met with silence from the US. Of course, thanks to a handy VIXnado, stock bounced back to VWAP, stabilized and closed the week in the green. The last two weeks have been the best for 7Y bonds in 10 months as it closes back under 2% for the first time since Oct 2013. Amid all this chaos, the US dollar closed unchanged on the week (giving up mid-week gains) as AUD and CAD strength dominated EUR weakness. Gold and silver - after a quiet week - was clubbed lower in the pre-open. Gold and oil surged higher on the Ukraine news - closing marginally lower on the week. VIX was cranked down to an 11 handle before Ukraine hit, surged back over 14.5, then jerked lower to close 'weaker' than stocks imply. Once again, US stocks surged once Europe closed (and of course, the panic buying into close makes perfect sense).

2014 so far... for some context.. HY unchanged, Treasuries +15.6%, Gold +8.2%, S&P +6%

 

Today was all about Option Expiration... the geoplitical plunge was trumped by machines need to get back to pin levels for options... hence the VWAP attractor in S&P futures today...

 

Say thank you AUDJPY...

 

As one 'smart chap' on TV said "people just wanna be long" - we assume he means bonds...

 

Now where have seen that before?

 

On the day, the Nasdaq managed to close Green - because you BTFEsclation... and The Dow and S&P closed unchanged

 

But notably from when the actual "invasion" news hit last night, stocks are also positive (having tested that level intrday)...

 

All indices close green on the week...

 

VIX had a wild ride on the week (OPEX so expected) but notably diverged into the weekend...

 

Treasury yields were a one-way street lower this week... 7Y under 2% - lowest in 10 months, 10Y 2.30% - lowest in 14 months, 30Y 3.10% - lowest in 15 months

 

FX markets were volatile on the week but the USD Index ended unchanged...

 

Commodities in the last 2 days have been very volatile... both oil and gold roundtripping

 

Interesting divergence (again) between gold and silver...

 

Charts: Bloomberg

Bonus Chart: JCPandemonium... it seems - as CDS suggested - that JCP is not fixed... -12.5% from AH highs last night