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Bonds Worst Run Since "Taper Tantrum" Sends Stocks To 4-Week Lows
The entire US Treasury complex surged higher in yield this week, rising 12-16bps (2Y +5bps) as the last 2 weeks are the worst for 10Y since last June's Taper Tantrum. Despite all the 'bonds-go-down-so-stocks-will-see-inflows' rotation buffoonery, stocks slipped to their worst week in the last six, as hawkish Fed concerns spread through markets. High-yield credit notably underperformed and VIX pushed back above 14 (its highest in a month). The USDollar rose 0.5% - 9th week in a row (despite EUR unch on the week) led by a 3% collapse in AUD and 2% in JPY & CAD. Gold and Silver dropped 3% on the week (worst in over 3 months, lowest in 8 months to $1230). WTI prices whipped around but ended -1% at $92. Of course, because it's Friday, the last hour saw manic VIX-selling, S&P futures buying (in 1 lots) to lift it magically off the lows to VWAP, but the S&P ended being the worst of the major US equity indices on the week (S&P <2,000; Dow <17,000).
Year-to-date, gold slipped to +2%, bonds are still leading but as the USD surged since August 'something' changed...
Not a pretty week for stocks - worst in six weeks with S&P the laggard!
As The S&P 500 loses 2,000...
And Dow loses 17,000...
VIX tried its best to get stocks higher into the Friday close...
ALL S&P sectors ended the week red led by Energy and Utes...
An ugly week for bonds...
Treasuries have worst 2-week run since the Taper Tantrum last year...
Where do they meet? (if at all?)
High-yield credit led the weakness on the week...
FX markets saw the US rise for the 9th week in a row (best run since Jan 2012) to fresh 14-month highs... but EUR ended unchanged - it was AUD, CAD, and JPY weakness that drove it
Ugly week for commodities. Gold tumbles most in over 2 months to 8 month lows...
Charts: Bloomberg
Bonus Chart: The exuberance in US financial stocks is not at all reflected in US financial credit markets...
Now where have we seen that before?
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Oh poop.
Buying 3X at 3:30 didn't even work.....was the NY Fed doing a hookers and blow party?
YES!!!
same fraudulent shit show day after fucking day...
it would be nice if someone could chart the number of days the Fraud Markets rally into the close in london and the last hour of trading in in the Rotten Apple...
These charts are exacly why the FED is bluffing. Rates can never rise or else everything will come crashing down not only capital markets but also housing, the economy, interest payments of the US, carry trades, the banking system etc. They need to taper so they can "untaper" at the right moment.
Good lord, 10's finished up over 3.00%. (7.9 bps)
Bunds are still below one percent?
Why do you think that is? Because Germany is Europes' safe haven, and Draghi has taken on a Dovish position, which is the complete opposite of the Fed. ( Although the Fed. is full of shit, and we'll see that next week)
All this whole charade is, is a reason to T/P on the carry trade unwind, and reload again at lower levels. ( wash/rinse>repeat)
so all asset classes are dropping. where is the money going? isis weapons? did it go short? where is it? and why did it liquidate across the board?
bonds seem to be pricing inflation in but not growth. if that is true, shouldn't the s&p do the same?
these are really fucked up times we live in. started buying handfuls of silver coins this week. seems like the marginal crowd is liquidating them, too.
copy that...
7 years and stackin...
Quadruple witch next week. Dark pools have to settle up for EOY books.
The 10-year UST is a screaming buy here. Anyone that thinks that Fed Funds is going to AVERAGE 2.60% over the next 10 years with the wheels falling off the global economy as we speak is out of their mind.
"Off the lows".
Actually, another bullish day for silver. Also, REIT ETFs pummelled on very heavy volume. 5 year yields continue to push toward 3+ year highs. 2 year yield also. Watching Spain, Italy crap bonds.
I'm surprised the markets sold off. Greece was upgraded today. Opa!