Bonds & Bullion Bid As Fading Stimulus Hype Sinks Stocks, Dollar

up. down. good. bad. "best economy ever". "recession imminent". record highs. record lows.

Chinese stocks were broadly flat overnight but tech-heavy ChiNext was weaker...

Source: Bloomberg

European stocks were all weaker today, accelerating lower after the Italian political chaos...

Source: Bloomberg

Italian bond yields plunged today after the political chaos (likely delaying the budget-busting vote)...

 

US equity markets gave back a good chunk of yesterday's hype-fueled gains...

 

Dow futures show the pump and dump best...

 

Sure enough the short-squeeze ran out of ammo and slumped...

Source: Bloomberg

2019 still looks oddly similar to 1998...

Source: Bloomberg
 

S&P slipped back down to its 100DMA

 

FANG stocks gave up all Monday's gains...

Source: Bloomberg

Bonds and stocks remain dramatically decoupled...

Source: Bloomberg

In fact the correlation between bond yields and stocks (typically positive - higher yields, higher stock prices), is its most negative since 2007...

Source: Bloomberg

Treasury yields continued their slide lower today after a brief bounce...

Source: Bloomberg

With 30Y heading back towards 2.0% again...

Source: Bloomberg

And the yield curve resumed flattening...

Source: Bloomberg

And the Term structure-implied odds of a recession are now above 70%...

After 6 straight days higher (to the highest since 2018), the dollar index slipped lower today...

Source: Bloomberg

 

Cryptos were broadly lower today (Bitcoin held above $10k)...

Source: Bloomberg

 

Silver outperformed notably on the day and oil prices dumped and pumped...

Source: Bloomberg

Spot gold prices bounced back above $1500...

Source: Bloomberg

And Silver popped back above $17...

Source: Bloomberg

Silver significantly outperformed gold on the day...

Source: Bloomberg

WTI Crude tumbled after the US cash market open but was bid back to unchanged ahead of tonight's API inventory data...

Source: Bloomberg

Finally, bond markets are oddly alone in their volatility currently...

Source: Bloomberg

And gold continues to track the world's policymaker idiocy perfectly (Crypto has some catching up to do)

Source: Bloomberg

And the correlation between bonds (prices) and bullion (prices) has never been higher...

Source: Bloomberg

Safe-Haven bid anyone?