Bond Bloodbath Sparks Biggest Stock Drop Since September

Worst day for stocks and bonds in 6 weeks...

Worst day for S&P in 5 months...

Did bonds just spoil the stock market's fun?

 

Ugly overnight in Chinese stocks...

After Friday's manic melt-up in US equities, Monday was a disappointment with China weakness sending futs lower overnight, the standard cash-opening ramp failed and a weak close... (month-end?)

 

 

Not even Trannies managed to cling to gains...

 

Was That The Plunge Protection Team? Or a well-timed Maxim acquisition headline

 

VIX spiked early and did not reverse - closing at its highest since August...

 

 

 

Notably, while upside vols were higher today, downside vols jumped more as perhaps the levered long buying panic has shifted to seeking protection...

 

VIX remains notably divergent...

 

Energy, Utes, Tech, and Financials took a dive today...

 

 

Ugly day for some individual stocks...

WYNN (Steve Wynn sex abuse blowback)

CAT (declining incremental margins)

Airlines saw no bip-buyers...

AAPL (iPhone X order slashed according to Nikkei)

And as AAPL slides, FANGs rally...

 

Bonds bloodbath'd again today... worldwide.

5Y Bunds saw yield move positive for the first time since Dec 2015 today...

 

Which helped push 5Y TSY Yields over 2.50% to their highest since April 2010...

 

The curve steepened on the day but we note the belly underperformed the longest-end...

 

Also notable is the pattern of post-Asia-close bond-buying returns...

 

 

The Dollar rebounded - most since October - briefly but once it tagged Trump's rescue bid highs, it rolled over for the rest of the day

 

Cryptos were lower on the day but remain notably higher post-Friday's close...

 

The Dollar's modest gain was enough to spook commodities which were all lower today...

 

 

Finally, we noted that investors can now earn 35bps more yield on a 2Y Treasury note than on the S&P's dividend yield - the most since Aug 2008...