Oil Leaked, Bond Volatility Peaked, Credit Markets Tweaked

After a disastrous day yesterday a bounce in bonds was at least on-the-cards and they went out at the low yields of the day (-6bps). Equity markets oscillated around their opening level of the US day-session with the S&P futures ending the day down over 8 points (in the middle of the range) glued to VWAP at the day-session close. Credit markets faded rapidly and while stocks are unch from last Thursday's close, high-yield and investment-grade spreads are significantly wider. VIX had another up-day (breaking above 15% intraday) but closing at 14.8% (highest in 5 weeks) but more criticaly MOVE (bond VIX) spiked to its highest in 9 months. Many talked about bond-like stocks getting hammered but it is noteworthy that homebuilders suffered the most today. USD weakness (and JPY strength) were the theme in FX markets as carry continued to be unwound of yesterday's peak and in turn this helped gold and silver push around +0.5% on the week. Oil prices slumped most in a month, testing below $93 at their lows.  

Equity volume ended above average, average trade size was low, and the S&P closed below its up-channel trend.

 

Credit leading stocks down...

 

As Stocks plunged but clung to VWAP into the close...

 

But as usual, it's the Trannies that are running high beta on this downswing...

 

and the homebuilders' losses are gathering pace... (as well as bonds-like stocks)

 

Oil down, Gold and Silver up...

 

Charts: Bloomberg and Capital Context

 

Bonus Chart: Cross-asset-class volatilities...