Stocks, TIPS Tumble As Fed Abandons Bond-Buying "Due To Technical Difficulties"

Tyler Durden's Photo
by Tyler Durden
Tuesday, Nov 23, 2021 - 04:46 PM

Something odd happened today. Treasury 10- and 30-year TIPS fell to session lows after the Fed postponed Tuesday’s scheduled purchase operation targeting the 7.5- to 30-year sector until Wednesday.

Due to technical difficulties, today’s Treasury outright purchase operation - scheduled for 10:10 AM in the TIPS 7.5 to 30 year sector for up to $1.075 billion - is being rescheduled,” Federal Reserve Bank of New York says.

“It is now scheduled to take place Wednesday, November 24, 2021 at 11:00 AM,” New York Fed says Tuesday on its website

TIPS prices fell quickly on the news...

Sending real yields surging higher (as breakevens tumbled)...

Which in turn is crushing many other assets...

Interestingly, while Nasdaq is sliding, the Nasdaq-Small Caps pair has seen a notable regime-shift relative to real-yields...

One wonders just what the 'technical difficulty' really is. Is it more likely a bond market liquidity issue?