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Bonds Drop, Dollar Pops After Hotter-Than-Expected Inflation

Tyler Durden's picture




 

Stocks - for now - are ambivalent to the highest core CPI in 5 months; but the grown-up markets in bonds and FX are taking notice. The Dollar has surged (led by EUR weakness) and long-bond yields are up 5bps (back to unchanged on the week).

Stocks are unimpressed...

 

But bonds and the dollar are 'anxious'

 

It appears the machines were in waterfall mode today....

 

Charts: Bloomberg

 

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Fri, 04/17/2015 - 08:55 | 6002531 buzzsaw99
buzzsaw99's picture

maybe i should hide out in stocks since my bonds are crashing /s

Fri, 04/17/2015 - 08:58 | 6002543 GetZeeGold
GetZeeGold's picture

 

 

Sweet soothing stocks.....tap your heels three times and say.....there's no place like home.

Fri, 04/17/2015 - 09:03 | 6002552 philipat
philipat's picture

But PM's down...It's getting absolutely ridiculous?

Fri, 04/17/2015 - 09:11 | 6002576 venturen
venturen's picture

getting? It actually makes prefect sense....if you have a massive depression coming...what do you think PM would do?

Fri, 04/17/2015 - 09:31 | 6002599 philipat
philipat's picture

PM's would rise into a Depression, after an initial fall with everything else, as all other assets collapse. PM's do very well in times of deflation as well as times of inflation. But so long as JPM is naked shorting paper Gold ad finitum  ALL situations are bad for Gold.

The apparent logic here is as follows: Inflation means that The Fed more likely to increase rates = Goof for USD = Bad for Bonds = Bad for Gold. But, excuse me, I thought that inflation was GOOD for Gold? So, as I said, nothing makes sense any longer...so what's new?

Fri, 04/17/2015 - 09:35 | 6002649 GetZeeGold
GetZeeGold's picture

 

 

But PM's down...

 

If you want to pay retail......I can totally hook you up.

Fri, 04/17/2015 - 10:04 | 6002754 silver_stacker
silver_stacker's picture

 

The PMs will continue getting manipulated down and the stock market manipulated up until the banksters lose control and the fiat ponzi scheme comes to an end...and it looks like the can being kicked is about to hit the wall...

Fri, 04/17/2015 - 09:01 | 6002549 iofera
iofera's picture

No, like a good Zero, you should be all-in on gold and silver.

That way, you can have your head handed to you like everyone else on here.

Fri, 04/17/2015 - 09:10 | 6002573 philipat
philipat's picture

So long as you believe in CB omnipotence lasting forever, despite common sense and basic economics pointing to the opposite, then fine, go for it, I would have thought that a reasonable allocation to PM's would now, more than usual, be a sesible position.

Fri, 04/17/2015 - 08:55 | 6002533 venturen
venturen's picture

nothing $500 Billion in printing won't cure

Fri, 04/17/2015 - 08:56 | 6002536 GetZeeGold
GetZeeGold's picture

 

 

Hotter-Than-Expected Inflation

 

No way it can just be me.

 

Tap tap.....is this thing on?

Fri, 04/17/2015 - 09:04 | 6002554 iofera
iofera's picture

No.

Fri, 04/17/2015 - 09:21 | 6002602 GetZeeGold
GetZeeGold's picture

 

 

Looks like we just got one.....let me guess.....hedge fund manager?

Fri, 04/17/2015 - 09:00 | 6002546 madbraz
madbraz's picture

bonds are not "anxious", they are just being manipulated relentlessly higher in the long end by "someone" who is desperate to keep it from going definitively below 2.5% (and keeping 5x5 forward breakevens above 2%...hmmm, can you say NY FED shills).

 

it's becoming an utter farse, a complete idiocy.  you can buy dollars and get 2.6% for 30 years as opposed to Euros and 0.44% for 30 years.  over 60% difference in coupon plus currency.  

 

when they have to choose between allowing markets to function and live with the consequences (to their buddies) or defrauding it until it breaks (and bail out their friends), they will always pick option #2.

Fri, 04/17/2015 - 09:04 | 6002555 yogibear
yogibear's picture

QE4 is assured. This time instead of $85 billion/month it will be well over 100 billion/month.

Fri, 04/17/2015 - 09:12 | 6002577 iofera
iofera's picture

QE4 is assured because inflation is rising?

Fri, 04/17/2015 - 09:20 | 6002601 madbraz
madbraz's picture

core inflation will be zero, but they will not publish such numbers

Fri, 04/17/2015 - 09:12 | 6002578 iofera
iofera's picture

QE4 is assured because inflation is rising?

Fri, 04/17/2015 - 09:10 | 6002571 iofera
iofera's picture

Remember, if bonds rise it's because they're being manipulated higher. However, if bonds fall it's just market forces at work.

Fri, 04/17/2015 - 09:58 | 6002592 buzzsaw99
buzzsaw99's picture

if anything the opposite is true

Also very apparent is that Dudley wants bond prices to go down – not a lot but clearly down... http://www.zerohedge.com/news/2015-04-09/peak-central-planning-bofa-says...

Fri, 04/17/2015 - 09:09 | 6002572 NoWayJose
NoWayJose's picture

You asked for it - you got it - inflation!

Fri, 04/17/2015 - 09:10 | 6002575 The Axe
The Axe's picture

Tyler jusr for the fun of it...tell everyone to buy the DIP...

Fri, 04/17/2015 - 09:12 | 6002581 valley chick
valley chick's picture

Why would I not be surprised to see a BATS self help this morning?

Fri, 04/17/2015 - 09:18 | 6002595 FreeShitter
FreeShitter's picture

Options are expiring today as well.

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