The USD ends the day higher but tumbled all afternoon and despite the weakness in stocks, US Treasuries were also being sold (+3-4bps). T-Bills were smashed higher in yield (to recent highs) as reality set in that this farce could turn tragic very quickly. We warned yesterday that longer-dated protection was being bid aggressively and sure enough once again Dec VIX broke higher early today (even as stocks surged higher) but soon after Spot VIX began to surge too (ending the day inverted once again). Gold and Silver were well bid as the world seemed to turn its back on USD assets and gold ended +0.75% on the week (with the S&P -0.5% on the week). The Dow closed back below its 50- and 100-DMA.
Hhhmm, what did the protection buyers know?
[3]
T-Bills also seemed to know something too?
[4]
What a difference a week makes for T-Bills...
[5]
and the end of the day saw an exodus from USD assets...
Charts: Bloomberg