Bonds Have Best Day In Over 3 Months Amid China Carnage, Turkey Terror, & Berlin Bloodbath

Despite considerably weaker than expected Services PMI, an assassination in Turkey, a terrorist attack in Zurich, and a bloodbath in Berlin, stocks rallied...

 

As a reminder - Chinese bonds crashed overnight again..

Hong Kong stocks tumbled into correction (red for 2016)...

 

And Italian banks all crashed (led by BMPS)...

 

First things first in The US - the market broke today and stocks loved it...

 

The Dow still has not had two down days in a row since before the election (7 weeks)... despite all the turmoil today... (and of course the standard panic-buying into the close)

 

Dow failed its 20k mission again...

 

Leaving all sectors red post-Fed (Energy laggard)

 

Treasury yields tumbled across the curve with the long-end's biggest yield drop since August... (The Turkey headlines and Berlin bloodbath sparked safe-haven buying)

 

Best day for the long-bond since August...

 

Bond yields suddenly seem attractive to stocks...

 

Post-Fed, the long-end is now down 2bps (with the rest of the curve notably higher in yield...

 

And the yield curve continues to flatten "policy-error-like"...

 

But it appears financial stocks love flatter yield curves...

 

The USD Index ended the day unchanged (rallying back on the Turkey-Russia headlines)...

 

Gold was the only major that managed gains today as copper crumbled amid China fears...

 

Gold prices rose for the 2nd day in a row - the first time since the election...

 

Financial Conditions are worsening once again...

 

And Commercial Paper market yields are at their highest since Jan 2009...