Stocks Stick-Saved While Bond Bears Battered

Treasury yields collapsed 10-12bps today with the largest decline since 9/18/11. Treasury yields in general slipped back to the lowest level in 3 weeks. The USD was slammed lower (except against CAD which pushed lower - down 2.5% on the week!). JPY strength was offset by AUD and the cross provided the ammo to lift equities back to day-session highs in the last hour (104 USDJPY was defended aggressively). Stocks broadly bounced immediately after the knnjerk selling off the NFP print, then leaked lower until 3pmET when a decidedly low volume meltup took NASDAQ and Russell back to almost unchanged on the year. Trannies outperformed, Dow underperformed (TRAN +0.65%, DOW -1% YTD). Silver and gold surged back into the green for the week with the latter closing above its 50DMA for the first time since October and its highest in a month. VIX tumbled to 12.2% as hedges were lifted and recoupled with the S&P.

 

Before we start - a close up of the day's insanity... notice the slow meltup overnight... the higher volume plunge after NFP... the pivot as Europe closed... the momentum ignition (AUDJPY) off VWAP in the last hour on low volumes...

 

From the US open, AUDJPY was in charge of stocks today...(as USDJPY 104 was defended aggressively)

 

Which lifted stocks handsomely back into the green (apart from the Dow)... but Trannies are the major outperfomer...(todsy was Trannies best day in 3 months!!!! WTF!)

 

As Healthcare takes over the top-spot post-Taper (with a huge day for homebuilder and Utilities are rates tumbled)....

 

Gold (and silver) rallied back into green for the week.. gold closed back above its 50DMA...

 

But today's big news was in the Treasury complex... as bonds ripped lower in yield...

Which dragged 2s10s curve to its flattest since Thanksgiving...

 

Spot the odd one out in FX land... CAD is getting slammed...

 

VIX dumped back to recouple with stocks as hedges were lifted...VIX closed at its lowest in 5 months

 

and short-term VIX (VXST) collapsed below 10% - its lowest on record (spiking the steepness of the term strcuture to its highest since the fiscal cliff a year ago)...

 

Charts: Bloomberg

Bonus Chart: ICPT - you just gotta laugh eh?!

 

Bonus Bonus Chart: Buy Financials 'coz of the all NIM...?

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