Futures Market Halted After "Violent" Treasury Reaction To Jobs Beat

"The most liquid capital markets in the world," were halted for 5 seconds this morning as "great news" on surging jobs sent bond markets into turmoil...



Charts: @NanexLLC

But you should not worry about the lack of liquidity.. because, as wenoted previously, The Fed says "everything is fine." 

All in all, the authors conclude that "the current state of Treasury market liquidity [is] fairly favorable," but do concede that "the events of October 15 and similar episodes of sharp, seemingly unexplained price changes in the dollar-euro and German Bund markets have heightened worry about tail events in which liquidity suddenly evaporates." 

Why yes, yes they do "heighten worries" because as you can see from the following, market depth just seems to disappear out of the clear blue nowadays.

We also noticed that at the end of the article, the authors promise to ferret out the causes of such anomalous events "in a future blog post."

To the NY Fed we say this: we know the good folks at 33 Liberty have more important things to do (like running the equity plunge protection team) than spending time searching for the culprits behind the Treasury flash crash, so we'll go ahead and point you in the right direction. First, look in the mirror, next refer to the graphic shown below.

Mystery solved. You are welcome.