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Bond Yields Plunge Most In A Year, Dollar Spikes As Inflation Soars

Tyler Durden's Photo
by Tyler Durden
Friday, Jun 11, 2021 - 04:00 PM

On the week, the major stock indices were mixed with The Dow lower, S&P unch-ish, and Small Caps and Big-Tech leading...

The flip-flopping rotation between big-tech and small caps continued all week...

Growth won the week as traders rotated back from value stocks...

Source: Bloomberg

Meme stocks also roller-coastered this week...

Source: Bloomberg

Banks notably underperformed the market this week as yields tumbled...

Source: Bloomberg

Healthcare stocks outperformed as financials lagged...

Source: Bloomberg

VIX closed with a 15 handle for the first time since before the pandemic...

Source: Bloomberg

But, the big story of the week was the collapse in Treasury yields (in the face of a soaring CPI print) as bond shorts were increasingly squeezed...

Source: Bloomberg

Bond shorts this week...

This week saw 10Y Yields drop 10bps - the biggest weekly drop since last June (4th weekly drop in a row)...

Source: Bloomberg

The Treasury yield curve also flattened by the most since last June this week...

Source: Bloomberg

And breakevens saw their biggest weekly drop since April 2020...

Source: Bloomberg

The dollar screamed higher today... erasing all the losses from last Friday's payrolls plunge...

Source: Bloomberg

Cryptos ended the week mixed with Ether notably underperforming Bitcoin...

Source: Bloomberg

ETH/BTC saw a big drop on the week (second biggest weekly drop in ETH relative to BTC since Jul 2019)...

Source: Bloomberg

The dollar's spike today slammed gold to the week's biggest loser in commodity-land as crude managed gains...

Source: Bloomberg

Is it time for copper crash or gold run? Or are yields completely off base still?

Source: Bloomberg

And finally, The Fed's balance sheet reached $8 trillion this week for the first time ever - basically a double since the start of the pandemic panic-response...

Source: Bloomberg

And the balance sheet keeps expanding despite the collapse of COVID...

Source: Bloomberg

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