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FOMC Reaction - Stocks Rip, USD & Bond Yields Dip As Sept Rate-Hike Odds Drop To 40%

Tyler Durden's picture




 

The early leak of the FOMC Minutes was initialy spotted in the FX and Rates markets (higher USD and higher yields) but as the full minutes were released the pressure really began in what appears a more dovish reaction. The Dollar plunged - near its early flash crash lows, yield across the entire complex have declined notably and the curve steepened; stocks are rising and gold and silver and getting a further lift... as September rate hike odds plunge to 40%.

September odds tumble...

And December odds rise to 65%

 

And after the initial reactions, the follow-through is very dovish

 

Charts: Bloomberg

 

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Wed, 08/19/2015 - 14:13 | 6444455 JustObserving
JustObserving's picture

September Hike Odds Drop To 40%

40%?

More like -40%

Old Yeller has to talk about an imaginary rate hike to support the bankrupt dollar backed by $210 trillion in US debt, and to keep gold capped.

Wed, 08/19/2015 - 14:16 | 6444481 Hongcha
Hongcha's picture

+1 JustObserving.  Trade the lies.

Wed, 08/19/2015 - 14:31 | 6444562 Sanity Bear
Sanity Bear's picture

Anyone know a good way to make a highly leveraged bet against a September rate hike?

Wed, 08/19/2015 - 14:17 | 6444491 KnuckleDragger-X
KnuckleDragger-X's picture

Tsk, you don't trust Yellen and her Posse? Raising rates would screw a lot of things up, starting with the Treasury. I think they'll likely try it after there's no hope so they'll have something else to blame....

Wed, 08/19/2015 - 14:23 | 6444516 This is it
This is it's picture

But her haircut is hot. Without it the FOMC meetings cannot proceed.

That's all that matters.

Wed, 08/19/2015 - 14:12 | 6444463 Chuck Knoblauch
Chuck Knoblauch's picture

You mean Goldman says it's 40%.

Even though they know it's 0%.

Nice way to make FEES.

Wed, 08/19/2015 - 14:13 | 6444474 Kaiser Sousa
Kaiser Sousa's picture

this country and its "markets" are a complete fucking joke....

pathetic.

Wed, 08/19/2015 - 14:19 | 6444494 StackShinyStuff
StackShinyStuff's picture

Yes, "markets" indeed

Wed, 08/19/2015 - 14:15 | 6444477 offwirenews
offwirenews's picture

meanwhile, oil is still monkey-hammered...and here we go with the classic V-Shape equity market activity. pathetic

Wed, 08/19/2015 - 14:19 | 6444495 KnuckleDragger-X
KnuckleDragger-X's picture

Oil is a real thing, unlike that stuff the FED creates out of thin air....

Wed, 08/19/2015 - 14:24 | 6444526 Montani Semper ...
Montani Semper Liberi's picture

+100

Wed, 08/19/2015 - 14:23 | 6444519 Gambit
Gambit's picture

Surprise! Not!  It makes no difference if they increase the rate or not.  Market conditions are deteriorating at a greater pace, once you are on this trajectory it is hard to stop.  Leaving rates at zero actually aggravates the situation.

 

Also, FUCK U YELLEN! 

Wed, 08/19/2015 - 14:21 | 6444501 offwirenews
offwirenews's picture

are you lauging at the v-shape chart or the url having "investing" in the title hahah

Wed, 08/19/2015 - 14:22 | 6444513 Bill of Rights
Bill of Rights's picture

Literally both...

Wed, 08/19/2015 - 14:16 | 6444482 Trucker Glock
Trucker Glock's picture

I'd love to see a competent hacker spoof the algos.  Need to get hackers and quants in the same room, with some reefer.

Wed, 08/19/2015 - 14:27 | 6444539 hongdo
hongdo's picture

Excuse me.  Just curious.  Why do you have a Glock name with an HK logo?

Wed, 08/19/2015 - 14:17 | 6444486 buzzsaw99
buzzsaw99's picture

and stocks soar while the 10y heads back toward 2% :fake shocked expression:

Wed, 08/19/2015 - 14:21 | 6444505 hongdo
hongdo's picture

Good God.  You mean that Golden Jackass was right?

Wed, 08/19/2015 - 14:44 | 6444614 Youri Carma
Youri Carma's picture

S&P up is the odd one with 10 Year down and gold up etc.

Wed, 08/19/2015 - 14:48 | 6444624 buzzsaw99
buzzsaw99's picture

the supposed relationship between stock and ust prices is fatuous, ridiculous, tenuous, fleeting, nonexistent, and transitory.

Wed, 08/19/2015 - 16:27 | 6445027 Icelandicsaga.....
Icelandicsaga...............................................'s picture

Sung to tune of Magnifecent Men in Their Flying Machines     Those magnificent men int their banking machines, 

they go up tiddly up up, 

they go down tiddly down down. 

 

They enchant all the ladies and steal all the scenes, 

with their up tiddly up up 

and their down tiddly down down. 

 

Up, down, flying around, 

looping the loop and defying the ground. 

 

They're all frightfully keen, 

those magnificent men in their flying machines. 

 

They can fly upside with their feet in the air, 

They don’t think of danger, they really don’t care. 

Newton would think he had made a mistake, 

To see those young men and the chances they take. 

 

Those magnificent men in their flying machines, 

they go up tiddly up up, 

they go down tiddly down down. 

 

They enchant all the ladies and steal all the scenes, 

with their up tiddly up up 

and their down tiddly down down. 

 

Up, down, flying around, 

looping the loop and defying the ground. 

 

They're all frightfully keen, 

those magnificent men in their flying machines.

 

 

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