Following the European close, US Treasuries sold off with yields rising 4-5bps (though 2Y outperformed, rising only 1bp on the day) despite chaotic panic selling in the March T-Bills. Stocks dead-cat-bounced with the same timing - find the day's lows around the European close as the S&P and Russell lost all their gains from the Taper decision over a month ago. This is the first 5-day losing streak for the Dow since September. Once the indices had reached unchanged and removed some stops, the selling began as despite a lower close for VIX (after tagging 18% early in the day), stocks tumbled into the close. The USD ended the day unchanged, despite major swings in AUD, CAD (higher) and JPY lower. Commodities slipped lower all day with some 'normal' illiquid moves led by weakness in Gold and silver..
Today's stock bounce started as the S&P and Russell hit unch from the Taper...
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but faded notably into the close...
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As always JPY was in charge but the close was very weak suggesting tonight could get ugly for carry-traders...
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And bonds were sold this afternoon (and were not bid as stocks tumbled)...
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and gold and silver also lost ground today...
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The USD ended unchanged but hid a lot of volatility across the majors...
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Charts: Bloomberg
Bonus Chart: The markets remained quite uncorrelated overnight but once the US opened everything synced up...
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Bonus Bonus Chart: AAPL's demise has taken the NASDAQ to pre-Taper levels...
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