Ben Pulls The Punch Bowl - Market Unhappy

The slightly delayed reaction to Bernanke's semi-annual report to Congress is now rather impressive as clearly the market is saying 'QE3-off' for now, in line with our expectation from earlier when commenting on the GDP number we said that "As for the reason why the market is less than delighted with this "beat" is that with EUR Brent at record highs, courtesy of everyone else but primarily the ECB doing the equivalent of QE 3 in 2011's biggest deception play, it firmly take the Fed's punchbowl away at least for 3 months. More at 10 am when Bernanke testifies." 10 came and went, and the heroin addict known as the stock market was less than delighted that the only drug promised by Ben is the ZIRP methadone which does absolutely nothing for incremental liquidity. The question then is - without more QEesing, where will the next trillion in liquidity come from?

Treasury yields are popping higher (4-5bps), the USD is strengthening (especially against carry currencies), equities are selling off led by financials, and precious metals are losing steam rapidly.

Precious metals sliding quickly - especially high beta Silver...

Treasuries selling off rapidly...

and the USD catches a bid...

Charts: Bloomberg