Hawkish Fed Sends USD, Bond Yields Soaring; Stocks Dump & Pump

Tyler Durden's picture

The last 2 days have seen the USD index rise at its fastest pace in almost 4 months, closing in on 1-year highs. Led by JPY and EUR weakness, the USD is up over 1% this week (which is set for the best week in 9 months). While stocks shrugged off the hawkish minutes initial kneejerk lower and surged towards new record highs, credit markets were not as exuberant about the great suck out of liquidity (and how they'll manage to roll the wall of debt forthcoming). VIX was slammed back to one-month lows (even as the Fed admitted greater uncertainty) slamming stocks higher. Treasury yields rose notably (with the short-end underperforming) as 2Y-5Y up 5-6bps, 10-30Y up 1-3bps.  Gold and silver drifted modestly lower and oil jerked higher. Copper was up from earlier on China restocking rumors. Into the close, stocks faded quickly - rather disappointingly ruining mainstream media's "new record high" headlines. Janet, save us....

Some context...

 

Stocks dipped and ripped on FOMC...

 

Thanks to VIX...

 

As the USD pushed on higher

 

to one-year highs...

 

But credit wasn't buying the fed tightening

 

and the long-end of the bond curve weakened but bear flattened...

 

but the whole curve remains higher in yield on the week

 

Gold and silver slipped modestly, oil surged on FOMC. Copper had a big day after China restocking chatter...

 

Charts: Bloomberg

Bonus Chart: AAPL Hit Record Highs...