Huang, Hot CPI, & Hawkish FedSpeak Hammer Markets: Bonds Battered, Big-Tech Bruised As Dollar Spikes

Tl;dr: "Total fucking carnage" was how one bond market veteran described the day to us as a hotter than expected CPI print combined with very hawkish FedSpeak sent rate-hike odds soaring and ripped TSY yields higher (led by the short-end, 2Y +20bps!, ugly 10Y auction >5%) with rates shrugging off oil's decline (Brent <$90, gas <$4!). The dramatically hawkish swing sent stocks lower (with NVDA losing ~$2TN now), credit spreads widened (HY/Tech ugly), bitcoin lower (high-beta tech) as the dollar spiked, crushing gold back down towards $4000.

All it took was one hot CPI print and two hawks to put bonds back in the driver’s seat...