Junk Bonds Dump To 3-Month Lows Amid Longest Curve Flattening Streak In 6 Years

Ignoring the surge in junk bond risk and collapse of the yield curve, stock investors were overheard saying...

 

Gold remains the post-Saudi-purge winner...

 

Stocks rebounded today. The Dow has nopw beenup 7 days in a row thanks to today's last second ramp...

 

But despite small caps bounce, they remain red on the week... as Dow, S&P, and Nasdaq scramble green

 

VIX was once again driven back below 10 to ensure a green close for The Dow etc...

 

The Media complex was busy today with rumors and headlines surrounding the AT&T, Time-Warner deal and the removal of CNN...

 

FANG Futures began trading today and FANG stocks ended lower but dip-buyers were evident...

 

Credit Markets continue to collapse... HYG at 3 month lows...

HYG (the high yield bond ETF) has seen outflows for 8 of the last 10 days)

With stocks and bonds notably divergent...

 

Notably the last few days have seen both bonds and stocks bid (just as both were sold in late Oct)

 

Treasury yields rose modestly today...

 

The Treasury yield curve continues to flatten. 5s30s is now down 10 days in a row - the longest flattening streak since March 2011 and Dec 2005 - if it goes 11 days that will be an all-time record.

And even banks are now starting to pay attention...

 

The Dollar Index drifted lower again, hovering at pre-payrolls levels...

 

Chaos in crude markets today as the DOE data sparked WTI selling, RBOB buying but then the machines took over and pumped'n'dumped it...

 

Gold and Silver managed to hold onto gains after selling off non-stop once Europe closed...

 

Finally, Bitcoin saw some crazy moves today after surging on the suspension the SegWit2x hard fork, then collapsing and then jumping back higher again - all on heavy volume...

Comments

Solosides Wed, 11/08/2017 - 16:04 Permalink

If, like me, you have made over 1500% on your original Bitcoin investment, dont forget to cash some of that in so you can buy weapons for efficiently slaughtering bankers and politicians during the uprising!

Hammer823 Wed, 11/08/2017 - 16:04 Permalink

All morning losses reversed.  Even the small drops get bid right back to even.  The most scripted market in the world.  With so much depending on it, it’s no wonder they rig it with such impunity.

BlueHorseShoeLovesDT Wed, 11/08/2017 - 16:21 Permalink

Man those Financials were ugly, I guess all we will need from now on is Amazon.

There was a day when the yield curve and financials were a telll on the Economy, but that was before 300 p/e represented great value.

D.r. Funk Wed, 11/08/2017 - 16:13 Permalink

Oh. I get it. Valuations were concerning to the granddaddy bank Bis, almost 3 years ago. We're taken 30% higher. Valuations had potential danger to Yellen, over 2 years ago. Then again 9 months ago. We're taken 10% higher. Then 2 months ago, again. We're moved another leg. Nice game. SEE MY FINGER ==SUB 11 VIX STREAK will die, after this round, once and for all==1% 3% DRAWDOWN LAPSE closer to ending, they know it==ADDITIONAL FORGED LEG closer to ending, they know it==RELENTLESS SPATE OF ' CONSECUTIVE ' ATH-CLOSES can't go 'forever'Shiller pe 31.58 (2nd place) 4.5% over 192987% above mean 96% above media

Keltner Channel Surf Squid Viscous Wed, 11/08/2017 - 16:29 Permalink

In a crass new set of commercials slated to air on Bloomberg TV, NASDAQ celebrity spokesman Morrissey sings: The more that you short me, the higher I get, you're wasting your timeI will feed a green bar -- with your head on the barI am now a central part of your margin clerk’s thoughtswhether you care or do not;  yeah, I've made up his mindThe more that you short me, the higher I get, you're wasting your timeBeware, there's more momentum from lonely dove Fed chairmenWhile you sleep, futures creep up to to your stopslike a bad dream that you can't wake, take the easy way -- you can’t lose:Just buy the QQQs  . . .  oh, buy the QQQs(The higher I get … now, you’re asking for it)

In reply to by Squid Viscous