Following Friday's ugliness in bond-land, today saw the Treasury market's best day in around 13 months as UST are starting to look a lot like JGBs in terms of volatility regime - which really won't help collateral. Gold and silver also had a positive day (both up around 1.1%) as the USD leaked 0.3% lower (led by a surging AUD that recovered a lot of Friday's gap-down losses). The Nasdaq underperformed on the day (as AAPL tumbled 3% from pre-open highs) but remains in the green (just) post-FOMC while the Dow, S&P, and Trannies are all holding red post-FOMC. Discretionary and Financials are now in the green post-FOMC as Builders continue their open-high-close-low regime (now down 7% from FOMC). WTI trod water around $103. Credit markets modestly outperformed on the day but remain significantly below pre-FOMC levels as stocks have almost regained it and VIX slid back to its lowest in 6 weeks (under 15%) though slipped higher from the open today.
The entire treasury complex rallied aggressively today...
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with the underperforming belly of the last few days outperforming the most today...
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The Nasdaq is just in the green since FOMC but the rest (aside from RUT) remain modestly in the red...
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And sectorally, financials (despite today's FDIC / BIS / Dodd-Frank news) are back above the FOMC highs (because all anyone can think about is NIM - not the MtM losses they are getting hit with) and builders once again open high and close low...
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The outperformance of the shorts post-FOMC has been rebuffed and they have been unwound en masse back above the FOMC levels...
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The USD dropped 0.3% (as the AUD surged)... Gold jumped and flatlined after EU close as did stocks...
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On a side note, S&P 500 futures volume was around half that of Friday's!!
Charts: Bloomberg and Capital Context