With the cash bond market closed, the indicator of choice (short-term T-Bills) remains absent from view but it is clear from the equity market's reaction (plunging back to T-Bill reality from Friday) that hope is starting to fade. Gold and silver are in demand (+1.2% this morning) and appear the preferred safety trade as Treasury futures imply only a 2-3bps compression in yield at the long-end (and only -1bps for 5Y). The Gold rally has recovered all the losses from the "stop-logic" idiocy from Friday's open [4] - though we are sure there are plenty more G-20 members lined up ready to support the status quo (after this weekend's commentary). Equities have eradicated all Friday's gains and are testing below Thursday's close (S&P -14 points from Friday's close).
Gold retraces entire crash from Friday...
[5]
as stocks lose all Friday's gains...
[6]
and bonds appear very quiet - no "panic" bid and the short-end is notably underperforming...
[7]
The USD is under pressure (-0.25%) led by strength in JPY and a bid for CHF too...
Charts: Bloomberg