Buyers Focus On Dollars, 30 Year After Fed, Stocks Shrug

Stocks slid slowly lower into the FOMC statement, then tumbled as no matter how hard talking heads tried they could not find a silver lining in the hawkish tone reflected across near universal sell-side confirmation. Stocks tumbled, commodities tumbled, and the USDollar surged but the Treasury curve flattened dramatially as 30Y was well bid and the rest of the curve offered (2Y surged higher in yield). The last few minutes saw the ubiquitous levitation to VWAP which lifted Small Caps briefly into the green briefly and stocks all ended higheer from the FOMC statement. By the close, the USDollar was up notably, stocks lower, gold down 1.5%, oil up over $82, and the Treasury curve flattened dramatically (5Y +8bps, 30Y -2bps).

 

S&P ramped to VWAP...

 

"Off the highs" to start, dump'n'pump on FOMC, sellers resumed on hawkish tone then rescue bid lifted stocks back to unch...

 

Post-FOMC, stocks dumped and pumped...

 

Financials were the big winners post FOMC... homebuilders not so much...

 

Credit markets were not playing along with the equity exuberance in the last few minutes and financial stocks remains wildly optimistic compared to credit...

 

HY credit didnt bounce and is not buying it...

 

The USD surged on the FOMC statement...

 

The long-bond also rallied notably (30Y yields dropped 6bps on the FOMC) and flattened...

 

Quite a divergence post-FOMC in the Treasury Complex...

 

This was the 2Y Yield's biggest rise since Dec 2010 and all as Speculative short positioning disappears...

 

5s30s collapsed back to catch up with stocks in the oddest decoupling we have seen in a while...

 

Commodities all slumped after the FOMC, led by Gold...

 

Silver was the biggest loser post FOMC but all fell...

 

Charts: Bloomberg