Saved By The Broken Euronext: Manic-Selling Becomes Panic-Buying In Global Bond, Stock Markets

Tyler Durden's picture

Overnight "manic-selling" in global bond markets (and turmoil in stock markets) has been met - suddenly - this morning by "panic-buying" as mysteriously liquid buyers lift stocks back into the green and send bond yields plunging (right after Euronext breaks)...




And US...


As Bloomberg adds,

“At some point the stress on stocks, risk assets, from either earnings fears or higher rates surely has a stalling effect on the panic in the bond market and we say panic with emphatical deliberation. Nothing excuses this rout beyond the emotions of pained positions which, largely, are in markets other than Treasuries,” CRT strategist David Ader says in note.


“Cooler heads, and we count ourselves amongst them, point to liquidity and VAR constraints on dealer desks that make these moves more exaggerated than they might have been a few years ago


Market is in a mode of “high volatility with no dealer liquidity and easy excuses but not, yet, thematic ones” as “gyrations of the past month or so have thrown people into a tizzy and certainly upset positions elsewhere, like in Bunds and the dollar, but we’re are just the derivative and don’t see that things have changed so much to warrant more of a selloff”

Charts: Bloomberg

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Headbanger's picture

The PPP is alive and kicking!

For now..

VinceFostersGhost's picture



We are the PPT, hear us roar.


Brought to you by Katy Perry, and her spooky friends.

Bindar Dundat's picture

They are just vacuuming up all the assets and debts  of every class with newly printed greenbacks.

Ten years from now they will own everything.


Bindar Dundat's picture

"They" are the government and this is a slow transition to socialism.

"They" are the TRIBE.

Ness.'s picture

Everything is awesome.  It's like last night never happened.  

blown income's picture

Guess the Etrade baby got up early...

coulous's picture

yellen said "GOLD IS QUITE HIGH" yesterday ?



Panafrican Funktron Robot's picture

Foundational "zero risk" assets trading like penny stocks.  Such is the downside to leverage.

Arius.'s picture
Arius. (not verified) May 7, 2015 7:33 AM

probably some Saudi trader able to do spoofing in Europe ... now that markets are open the spoofing will be corrected ...


NoWayJose's picture

It was as if millions of tiny zeroes suddenly cried out in pain, then were replaced by millions of tiny ones...

McCormick No. 9's picture

Uncontrolled bond yield spikes are not allowed. There is no market. While it is true that what goes up must come down, it is also true that what doesn't exist cannot obey the laws of nature. Or, as Aldo Nova said...

firstdivision's picture

In a true "broken market", there are no trades taking place as bid/offers are not being received, so theory says price is null.  Somehow, when these markets are broken now, price always moves, and it always moves up.  So the only market that is breaking, is retail/investor access, while CB/HFT on behalf of CBs, still have access. 

SillySalesmanQuestion's picture

It's going to be a long day for CB interventionists...

teutonicate's picture
teutonicate (not verified) May 7, 2015 8:26 AM

Does anyone still have any doubts that these markets are being manipulated by central and money center banks in collusion with their cronies?  I suspect that at some point soon a vast conspiracy to artificially prop up currency and financial asset values, coupled with gross abuses of insider trading - all substantially (if not completely) orchestrated by the cabal will become public knowledge.

The only caveat I might add to this diagnosis, is that there might be a fair bit of simple governmental and regulatory incompetence thrown in for good measure.

In the mean time ask yourself, in a world of corruption, incompetence and uncertainty which assets do well?

I think we all know the answer.

SheepDog-One's picture

Hurry and sell all the things! No wait, BUY all the things!!

debtor of last resort's picture

Paging ekm1...  "they" take their joysticks and drag the lines upward.

holgerdanske's picture

No doubt the PPT is hard at work, manning all the pumps, and yet the ship is lying lower in the water.

That can only mean they need more pumps, or the ship will sink.

I think they are tired and confused by now, standing in water to their knees.



vote_libertarian_party's picture

It's a Festivus miracle!

macambaman's picture

Japan back from holiday.

Hazlitt's picture

Bursting bond bubble nearly brings banks to bankruptcy, but blatant boondoggle by Bullard backstops more bulls.

frankly scarlet's picture

let's give the CBs a break, they're trying as hard and as fast as they can; and just as their PPT goes into action on equities the RPT has to swing into action simultaneously on the sovereign debt=money file. So cut em some slack. Do you know how difficult it is to run entire economies? Especially ones that are in the shitter?

theyjustcantstop's picture

another day, and more sheep to shear, will god's work ever be done.