Another day of carnage in bond markets, rescued to a smolder by a mysterious global bond buyer... makes us wonder just how long before that 'smolder', explodes...
Bonds made the headlines... as overnight carnage was aggressively bid from before the US Open to assuage equity weakness... (TSY yields are still up 8-11bps on since Friday)
Bond prices since Payrolls are higher for 5Y, flatish for 10Y and down for 30Y...
Futures show the swings better than cash... as we pushed down to pre-payrolls levels then bounced as bonds were bid (weak close today like yesterday)
Cash equity indices decoupled today - Trannies ugly, the rest rallying along with bonds, desparately hoping to hold green - but failed 3 times...
The Bottom Line - Stocks now need lower bond yields... or there's trouble ahead...
And Rate Vol has dramatically decoupled from Stock Vol...
The Dollar gave up yesterday's gains and then some but once again USDJPY was very stable as EUR and GBP strengthened...
As The Dollar slipped, commodities gained ground... but with a lot of noise on the way...
Post-Payrolls, crude is winning but everything is up...
With crude exuberantly pushing 2015 highs...2nd highest close in 6 months...
Charts: Bloomberg










