Stocks Slump Into Red After Disastrous 30Y Bond Auction

Following the disastrous massive tail in the 30Y Treasury bond auction, yields have exploded higher, but instead of reflexively rallying on the bond losses, stocks are sliding as we suspect Risk-Parity strategies are forced to rebalance in a hurry.

Yields surged...

But stocks tumbled...

S&P tested and failed at 3,000 for the 4th time...

As bond yields and stocks recouple...

This is the biggest 5-day rate-shock since Trump's election...

Moreover, given the record high duration, this kind of rate-shock may ripple through global risk assets in a hurry.