Bank Stocks, Dollar Jump As Fed Sends Yield Curve Tumbling Near 10-Year Lows

Tyler Durden's picture

The Treasury curve (2s10s) has collapse to 80bps - its lowest since September 1st 2016 following The Fed's rate hike. The supposedly dovish statement sent the dollar higher, and helped bank stocks (even as the yield curve dropped and flattened). Gold is also under pressure...

So that didn't work...

Almost at its flattest since 2007...


But financials don't care about the collapsing yield curve...

And despite the 'dovish' comments, the dollar is rallying...

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Insurrexion's picture

Here we go again...

Burltron's picture

Gold and especially miners getting fuck hammered as usual. When will this end?

NugginFuts's picture

When the FOMC members begin each meeting with an outdoor baseball practice. 

Al Huxley's picture

Yeah, my reaction was the same as 'the market's.  At first, I thought 'wow great for gold' and bought a bunch.  Then I immediately realized the error in my thinking and sold it all into the market.  Then I thought 'you know, rising rates should be GREAT for tech stocks' so I bought a bunch of AMZN.  Then I realized that rising rates would probably put pressure on corporate balance sheets, so I sold my AMZN at market.  Then I thought 'the reaction in the bond market's overdone' and loaded up on TLT.  But probably, thinking about it, I'll have to buy GLD and GDXJ into 3:30, then sell them violently into the market at close.  


But I think I have a pretty good finger on the pulse of the market, and how it's benefiting from the Fed's benevolent management.  The thing I find really amazing is that I, like EVERYBODY ELSE, knew exactly what the Fed was going to do days ago, but my thinking about it, and my corresponding required trading actions, only became clear at 2:00.00.0001PM.  Weird.

asteroids's picture

Don't feel bad, you at least tried. But, since 2013 or so the "market" has known every move you make and will move prices to shake you out of your position. Time frame don't matter. That's why I don't play anymore in a rigged casino.

virgule's picture

You are looking at the situation from a market internal point of view. You also need to factor in what the rest of the world sees from their less rosy perspective.

lenovot60's picture

Isn't this good for the Fed:  Long term rates stays low while short term is going higher?  I would have assumed that the LT rates will go higher as short term I missing something?

MFL5591's picture