'May'hem Strikes - Dollar & Bond Yields "Pounded" To Post-Election Lows

Tyler Durden's picture

Bonds have gievn up, comodities have given up, inflation expectations have given up, bank stocks have rolled over, and even 'soft' data is starting to rollover... still the 'rally' is in tact, it's just a fleshwound according to the business media...


Bonds just overtook The Dow year-to-date, Banks are red and gold leads...


This is getting silly...


A turmoily day:

  • Theresa May announce surprise general election - crashes FTSE100 (most since Brexit), sends cable soaring most in 3 months to highest since Oct 3rd
  • Goldman big miss - worst day since Brexit
  • Industrial Production disappoints with plunge in factory output - never been down this long outside of a recession
  • US Macro Surprise index plunges most since May 2011
  • Dollar tumbles most in a month after Goldman folds on Long Dollar (and cable strength) - lowest close since day after election
  • 30Y Treasury yield tumbles most since first day of January - lowest close since day after election

But, thanks to the ever-present willingness to sell vol, stocks managed to BTFD...


Small Caps managed to close green...


After yet another squeeze...as soon as Europe closed


VIX call volumes are spiking...


With a record net speculative short positioning, it is perhaps not surprising that Cable exploded higher today...


But then margin calls and algo panic ran the pair over 1.29 in the afternoon...


The Dollar Index and The Long Bond (yield) have plunged to the lowest levels since 11/9/17... blame The Fed...


The front-end reflation trade has tumbled...


The Treasury curve has collapsed to 6-month lows...


Goldman suffered the worst day since Brexit...


Surprise!! Maybe Goldman credit markets were right after all?


Still a lot of hope priced into Goldman shares...


Banks have been ugly since Trump spoke to Congress...


Gold was mysteriously hammered into the London Fix but headlines about The Pentagon planning to shoot down North Korean missiles sent the precious metal soaring again...


WTI and RBOB bounced back in the afternoon (ahead of tonight's API data)


But weakness across Asia last night was dominated by the collapse in industrial commodities...whoich have erased all the gains post-Trump


So, what happens to the stock market next?

Of course this is no surprise to bond traders...

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NugginFuts's picture

Huzzah! "Worst since Brexit" has officially replaced "Worst since Lehman!"

JRobby's picture

It's unravelling

It's the new "norm"

Unravelling is the new "norm"

Darktarra's picture

Folks its OK ... why do you think we have printers that print cash!?

Raffie's picture

If NK war breaks out watch the casino start to melt?

Lots going on for sure.


NugginFuts's picture

You mean melt UP, right? PPT would dive on that grenade faster than Captain America.

Raffie's picture

May not melt up because people will freak out thinking the world will get pulled into war and cash out.

PM should do well thou.

Its my thought.

Darktarra's picture

More like, cork the pop! 

SomethingSomethingDarkSide's picture

Markets = Bank of Japan.

They say correction not allowed yet, correction will not be allowed.

Simple. As. That.

OverTheHedge's picture

"They say correction not allowed yet, correction will not be allowed."

Collection not arrowed, it being Japan and all.

(Sorry - run out of cider, now on wine - can you tell? Apparently 800litres of cider is insufficient for a 12 month tipple. Good news is I have another 500 litres fermenting now, and another 100 to press tomorrow)


SomethingSomethingDarkSide's picture

One does not apologize for cider consumption, it is an accepted factor of life.

Ferment onwards to victory!

wisehiney's picture

And its not even May yet.

Just wait.

Squid Viscous's picture

Buy The






brushhog's picture

They raise rates and yields go down. Unbelievable. Does this mean the fed has officially lost control? I'm assuming people are gobbling up yield because they are moving out of equities. I guess thats why raising rates into a faltering economy is a bad idea. Pretty soon the market will go down, and yields will be nonexistent, there'll be no where left for money to go and thats officially when the game is over. Gold looking better than ever.

Winston Churchill's picture

They never really had control, the market was just mesmorized Yellen's droning.

When stawks finally give up the ghost, not even PPT and  Yellin will be able to stop it.

It will be just like a bullfighter trying to  kill a  herd of bulls stampeding towards him.

The herd is finally getting spooked.

BigFatUglyBubble's picture

btw you guys I tried schlepwave,com and lost everything!  No better than flipping a coin!  If you want your wife to leave you, and you want to end up living in a van down by the river, try schlepwave,com.

Consuelo's picture



"...but headlines about The Pentagon planning to shoot down North Korean missiles sent the precious metal soaring again..."


Like, what - if we do shoot one down or one makes it through and blows something up, these idiots have instant 'gold' on their hands to survive the bug-out...?


A comedian playing a neurotic tweeker comes to mind...

Ink Pusher's picture

Typo in the chart descriptives:

"But weakness across Asia last night was dominated by the collapse in industrial commodities...

**whoich ** have erased all the gains post-Trump."

Ink Pusher's picture

So much for that rate hike...lol

Two little bumps for the 30 Year Bonds and a 30 day USD pump before the dump.

Time for a war or two to get underway to feed the flesh hungry debt machines fueled and ready the loan contracts for "WW v2.1".

buzzsaw99's picture

okay class, again, what happens to long term rates when yellen hikes?

<-- they go up in lockstep, duh, everyone knows that.

<-- could be up, could be down, because they aren't correlated bitchez.

NugginFuts's picture

wait wait wait, you mean to tell me that the overnight interbank lending rate for funds used to meet reserve requirements isn't perfectly correlated to the supply and demand of 10 year treasury notes because they are completely different things????

Mind = literally blown.

jamesmmu's picture
What Impact Does The Chinese Housing Bubble Have On Local And International Markets? Is The Housing Bubble Going To Burst Very Soon?


Vlad the Inhaler's picture

50% tax on foreign buyers, now.

Fundies's picture

In for a penny, in for a pounding. 

silverserfer's picture

lets simplify all these charts. Quantity, quantity, quantity<quality. That is all

tropicthunder's picture

I especially love how they whack the shit out of gold just before taking it higher. Good ol' shyster trick that never fails..

Dr. Magoo's picture

I think the goal was to prevent it from getting past 1300, which I'm sure it would've broken had it not been for that hammer in the AM

Twee Surgeon's picture

This is all being played as a Path to Solidarity for Brexit, but is it ? That is the story that's being sold and the Tabloid Political Statistics seemingly indicate that it would be a walkover for the "Conservative Party". In a Rigged Election the outcome of the vote will be whatever the Bankers desire.

Brexit was a Referendum, a referendum will be Shot to Shit by a General Election and it will be Spun As... The True Will of the Majority is now Known.

Kiss Brexit goodbye in June. They are rigging the game. Brexit was unexpected, they got that wrong too, like everything else they touch.

Consider the meaning of these words......Democratic Monarchy.

Bryan's picture

Long USD.  It will recover.

whatamaroon's picture

Highly dissapointing that Trump seems to be re-nigging on his promise to get out of the (globull warming scam) Paris accords.