If The Fed/ECB's plans were to shake out some of the extreme positioning in markets, it is succeeding but they are losing grip on any control of this chaos... (apart that is for the mickey mouse equity markets)
For the 3rd day in a row, stocks exhibited a similar pattern...
[9]
The new normal - liquidity ramp to infinity as time approaches 16:00 $ES_F [10] pic.twitter.com/hK1PmmpOU9 [11]
— Eric Scott Hunsader (@nanexllc) June 3, 2015 [12]
But once again the story of the day was the utter carnage in the FX and bond markets...
US Treasury yields are up 20-24bps this week with more carnaging happening after ECB's Draghi mentioned inflation forecasts and expects more volatility
[13]
This leaves US Treasury yields all higher post-QE3
[14]
Side note - what exactly is going to happen to mortage apps after this collapse?
[15]
Lots of excitement about higher rates and financials... better hope 3rd time is the charm for decoupling from credit...
[16]
Bunds were crushed... 10Y Yields hit 89.7bps! up 42bps from Monday lows! German bond yields are now the highest since Oct 2014
[17]
The Dollar was clubbed like a baby seal once again all on tyhe back of EUR strength...
[18]
EURUSD has risen by almost 3% (almost 400 pips) in the last 2 days - the biggest surge since March 2009!
[19]
And this time the commodity markets also suffered...
[20]
With Crude very unhappy about the opngoing rise in production (no matter how many times CNBC proclaimed the inventory draw)...
[21]
But stocks just "stayed the course" with Trannies outperforming on the day...
[22]
A glance at futures shows the volatility that the day-session masks...
[23]
Since Friday, all indices are now greem...
[24]
As Stocks and Bonds decouple further...
[25]
Charts: Bloomberg
Bonus Chart: Some context since the end of Jan...
[26]
Bonus Bonus Chart: JPMorgan reports Clients have not been this net short Treasuries since 2006...
[27]