Treasuries underperformed but only modestly (ending the day 2-3bps higher in yield) but worth noting that the 10Y and 30Y and 29-30bps higher in yield post NFP. The S&P 500 made new all-time intraday highs (after ramping aggressively from the European close) but shorts seemed to know something and were heavy sellers from that point (with the 'most shorted' names actually closing down on the day). The Dow closed down 0.17% as there was no POMO to save us (despite a decent 330 ramp effort that dragged SPX into the green - just). It is elsewhere that cracks are appearing. VIX remains relatively bid to equity exuberance (as hedges remain) and the underperformance of credit is rather dramatic (typical underperformance has been reversed rapidly with in 2-3 days this year - not this time). A modestly stronger USD on the day (led by AUD weakness - not helping the carry traders) was not a factor for commodities where gold, silver, and oil (QE-sensitive) dropped 1% on the day. But then again, why worry, tomorrow is Turnaround Tuesday after all...
SPX made new all-time highs on the back of a perfect post-EU Close squeeze ramp of the shorts but as the afternoon began, shorts piled back in...
[4]
but credit has been underwhelmed for a few days now...
[5]
Gold, silver, and oil all stayed together in a QE-off manner today...
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as Healthcare was bid once again and QE-sensitive Materials and Industrials faded (as did Utes on rate weakness)...
[7]
But Treasury weakness was clearly not perceived as growth-driven with the S&P ignoring it as a driver today...
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and FX Carry doesn't seem to playing along with equity happiness...
[9]
Charts: Bloomberg and Capital Context