This week's 35bps rise in high-yield credit spreads (or ~10%) is the worst since at least June of last year and anxiety spread through other asset-classes appropriately as cheap-buyback-funding and liquidity concerns weighed on all equities - most aggressively small caps. The Russell 2000 is down around 4% from FOMC (and for the year) even with today's buying-panic this afternoon trying to rescue yesterday's losses. Much of today's moves were thanks to The Bill Gross Effect - Treasury short-end sold (2Y-5Y +5bps, 30Y unch), corporate bond spreads jumped wider (HY +20bps, IG +4bps), and European bonds (and German stocks) lurched lower. Markets recovered some of the early move but 2Y closed at 2014 yield highs. The USD closed 1% higher for the 11th week in a row to June 2010 highs. WTI crude close +1.5% on the week, gold unchanged, and copper and silver lower. VIX jumped 22% on the week, closing above 14.5.
For your consideration... volume was dismal today
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Stocks rescued from really dismal performance today...as the machines desparately tried to recover yesterday's losses...
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On the week, it's all red... led by Russell 2000 weakness
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And post-FOMC, redderer... (but note that the Dow was ramped to almost unchanged)
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Credit's early weakness recovered a little but nothing like stocks...
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as HY credit suffered its worst week since June 2013...
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Divergence?
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Stocks and the long-bond decoupled...
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Stocks and JPY recoupled.... then faded...
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Stocks and VIX remain in love...
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Treasuries very mixed on the week as The Bill Gross Effect dominated today...
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The USD rose for the 11th week in a row, with CAD and AUD the weakest (but EUR driving)
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Pushing the USD Index to June 2010 highs
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Despite USD strength, gold closed unchanged and oil rose...
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Charts: Bloomberg
Bonus Chart: S&P dropped from its richest to Fed Balance Sheet...
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Bonus Bonus Chart: Gold relative to the world's Central Banks' balance sheets has reached an interesting level again...
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