Reminiscent of the "QE Trade", stocks and bonds are surging and the USD dumping this morning as yet more terrible data spurs 'hope' that The Fed will stay lower-er for longer-er and lose all credibility for good. The Dow is now 350 points off Friday's lows (even as oil collapses) on nothing but disastrous data and Treasury yields are 5-6bps lower than the late Friday pop highs. The USDollar is down an impressive 0.75% since Friday as Crude hovers just above a $42 handle.
Today's rally in bonds and stocks has recoupled the long-end and the S&P post-payrolls...
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As stocks surge off Friday lows... just like they have a few times now...
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and while Energy stocks are now in th egreen for the day, we remind 'traders' and machines that they are trading at 27x fwd multiples...
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This is the biggest drop in the dollar in 5 weeks.
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Credit is less exuberant...
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Charts: Bloomberg
