"Unrigged" Close Buying-Panic Saves S&P 2,000 For Long Weekend

Tyler Durden's picture

For the 6th week of the last 8, Treasury yields declined with 30Y pressing to 3.05% (and 10Y 2.32%) handles to 15-month lows. US equity markets saw volume crater as the early high-stops were run in the EU session and low-stops run in the US session before the ubiquitous EU close ramp lifted futures to VWAP and S&P cash to 2000.xx where it stayed for the rest of the day in a wholly unrigged way. Trannies ended the week red and Russell the best. The USD Index closed at 13-month highs (up 7 weeks in a row). Despite USD strength, gold and silver rose 0.5% on the week but oil was the big winner +2.4% (testing $96) as copper tumbled 2%. Credit markets closed at their wides (as stocks closed at their highs). Interestingly, once the Sept POMO schedule was released, TSYs sold off on the day to close red (but end 4-7bps lower on the week). VIX closed unch today but the ridiculous late-day panic-buying spree in futures grabbed stocks back above the crucial 2000 level for the S&P. Year-to-date, Treasuries lead +16.75% as the S&P (+8.5%) overtook gold (+6.7%) in the last few days.

 

Stocks top gold YTD for the first time this year but bonds are winning...

 

From Cameron's Speech this morning, futures sold off and rebounded...

 

Driven by VIX...

 

and GBP!!??

 

But most (aside from Trannies) remain green on the week...

 

Even as Treasuries continue to rally (note the weakness into the close though)

 

As the divergence grows...(just this week)...

 

 

And credit's not buying today's buying panic close...

 

FX markets were quiet today but chatter of large orders this afternoon sent the USD to the highs of the day/week - highest in 13 months

 

Though Cable surged into the close...

 

But gold ansd silver cloed green on the week, oil suged and copper purged...

 

Charts: Bloomberg