Dollar & Bond Yields Plunge As Cohn Doubts, A Draghi Dud, & Debt Ceiling Denials Dominate

Ugly jobs data (hopefully transitory), uglier energy industry data, and ugliest comments from Trump on throwing away any fiscal restraint with the debt-ceiling bathwater left the dollar down, stocks lower, and bonds and bullion bid...

 

Was this Gary Cohn driven?

 

The Dow (hurt by DIS, GS, and TRV) and Small Caps sank on the day... (stockas levitated after Europe closed yet again)

 

Trannies scrambled back to unch on the week...

 

Reinsurers extended losses today...

 

VIX limped lower again today, desperate to get S&P green (but failed)

 

Even as realized vol surges...

 

For now only FX vol is "getting it"...

 

Bonds are from Mars, Stocks are from Venus?

 

Treasury yields tumbled once again...

 

Pushing 10Y to a 2.03% handle...

 

The lowest since election day...

 

But, but, but... how can interest rates be this low? It's the 'real' economy, stupid!

 

Bloomberg's Vincent Cignarella points out something interesting...Lest you have any doubts that the Fed is on hold for the time being, consider this: Is the central bank really determined to drive the effective Fed Funds rate through the two-year yield with another 25 basis point hike? Highly unlikely.

 

The Dollar Index plunged most in 6 months today after Draghi delivered a nothingburger and Trump suggested doing away with the debt ceiling...

 

The Dollar index fell to its lowest since Jan 2015... (NOTE the USD is down 3.7% YoY - the biggest Annual drop since July 2014)

 

WTI and RBOB sank today but the former held above $49...

 

Gold spiked to its highest since the election night spike highs - breaking above $1350 - perfectly mirroring USDJPY as usual...

 

OJ Futures bounced 3% today as Irma neara Florida...

 

Finally, now it gets exciting...