Bank Stocks Stumble To 1-Month Lows As Yield Curve Slumps Post-Fed

Tyler Durden's picture

Not sure why but this seemed appropriate after listening to the drivel from Washington (and Fed speakers) all day...

 

Bonds and Bullion the big winners post-Fed...

 

There were 3 notable legs lower in stocks today... The catalysts seemed to be

1335ET - *EVANS SEES MORE UPSIDE POSSIBILITY IN UNCERTAINTY FACING FED, THIS IS A CHALLENGING TIME TO GET BIG U.S. FISCAL BOOST
1431ET - *EVANS SAYS MARKETS CAN HANDLE FED BALANCE SHEET NORMALIZATION
1445ET - *COMEY: THERE WERE EFFORTS TO PENETRATE VOTER ROLLS

With Evans comments inferring whetever gains Trump gets will be offset by Fed hikes. Of course, then VIX was clubbed like a baby seal to get The Dow green but once the stops were run, it was over...

 

But while VIX was slammed, SKEW hit a record high!!

 

Nasdaq manage to scrape green but everything esle was red...

 

Retail Stocks suffered their biggest drop since Feb today as "the next (original) big short", i.e., CMBX, shows that recent negative trends are accelerating to the downside.

 

High Yield bonds slipped lower again - following avery similar pattern to the election bounce off the 200DMA..

 

With Japan closed, overnight liquidity was thin in Treasuries but once the US woke up, bonds were bid...

 

Treasury yields have done nothing but fall since The Fed hiked...

 

Notably, the yield curve has flattened dramatically in the week since The Fed hiked...

 

And that is (for once) weighing on bank stocks...now at one-month lows

 

Of course - this whole move has not been about the yield curve - no matter what the mainstream media want to tell you

 

The USD Index drifted lower in a very narrow range...

 

Very quite day in FX land though with Cable the biggest mover (dropping after May saying Article 50 dropping next week)

 

Crude prices dropped once again but RBOB bounced to one-week highs...

“The reopening of the Libyan ports is the reason for today’s drop and the U.S. rig count doesn’t help,” says Bob Yawger, director of futures division at Mizuho Securities USA. “The drop in net-length is a signal from speculators that the market is vulnerable”“

It looks like someone is trying to jawbone the market,” says Gene McGillian, manager of market research for Tradition Energy in Stamford, Connecticut “The fundamental picture remains weak, with massive inventories and rising U.S. production”

Gold held on to gains on the day to March highs as Bitcoin suffered further after "fork" discussions raise more concerns...

 

Finally there's this...

And this.,..

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AlexCharting's picture

Sell-off on low volume.... meh, 

NugginFuts's picture

Waiting for the sound of mounting panic followed by a stampede for the exits?

FreeShitter's picture

I love me some inverted yield curves.

TradingTroll's picture

Still time for the Dow to test the top of the channel around 21500 ish.

besnook's picture

banks led the last crash. looks like they are leading this crash also.

BigFatUglyBubble's picture

Golden Golem Boy gonna give em bailout v2.0, maybe even bail-in

adr's picture

Sub $50 oil and gasoline will be above $2.50 almost everywhere I fill up and I'm not in CA or PA.

Apple hits a record high even though their new wonder product that was a catalyst for rumors about something world changing and even more bubblicious  for stock value ended up being a doorknob.

NugginFuts's picture

a doorknob made with parts some other company has been using for years already.... but it's "new" when Apple does it! So they can charged 300% markup because they added iShit to their OS and millennials will scoop it up with both hands on student loans they never plan to pay back....

HRH Feant's picture

Always look on the bright side . . . hahahahaha!

BurningBetty's picture

It seems noone is able to get it yet....there are only a few stocks that matter, what happens to the rest is completely irrelevant. All other companies can go bust as long as AAPL, FB, AMZN, MSFT, TSLA, NFLX, GOOGL and maybe NVDA remain at ATH or pushing new ATH every day. Those stocks ARE THE MARKET!

NugginFuts's picture

Systemically important to the NSA/FBI/CIA/datawhoring infrastructure.

Fundies's picture

Longest market top in history ?

MikeOz's picture

ALWAYS GLOOM & DOOM ZH? YET THE MARKETS CONTINUALLY DO WELL? TIME FOR SOME POSITIVITY ME THINKS??

mkhs's picture

I am positive that this sucker is going down.

Sledge-hammer's picture

F*ck the (((banks))) and the (((banksters))).

J bones's picture

So in 2008 yields peaked at 5.20 on the 10yr