Ahead of tomorrow's all-important facade of the NFP print, US equity markets traded on very low volume in the 2nd narrowest range in 6 months. Sectors were a litte more disprsed with rate-sensitive names hurt and Utes underperforming. The real story of the day was the "Taper-On" trades in Treasuries, precious metals, and the USD. The belly of the Treasury curve smashed another 10-11bps higher (now up 21bps from Friday's pre-Obama speech) as the 10Y trod water at 2.98% from the European close only to jump up to 2.99% into the close. As we crossed the US open, gold and silver were summarily punched lower, down 1-2% on the week as the USD surged following Draghi's chatter and better macro data this morning. Credit markets were decidely more nervous going into the close than stocks. Gold and the S&P 500 are now exactly equal with each other and unchanged from the 6/18 FOMC "Taper" moment (and Silver is up 7%).
The S&P 500 and gold have danced around one another but are now ending exactly unchanged from the 6/18 "Taper" FOMC...
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On the day, it was all about bonds and gold (and the USD), as stocks did nothing...
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The week in Treasuries...
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But credit markets are not buying the equity complacency!!!
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Oh and about that "steeper" yield curve providing all that NIM for banks???
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Charts: Bloomberg
Bonus Chart: Is This As Good As The Macro Is Gonna Get?
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