The entire US Treasury complex surged higher in yield this week, rising 12-16bps (2Y +5bps) as the last 2 weeks are the worst for 10Y since last June's Taper Tantrum. Despite all the 'bonds-go-down-so-stocks-will-see-inflows' rotation buffoonery, stocks slipped to their worst week in the last six, as hawkish Fed concerns spread through markets. High-yield credit notably underperformed and VIX pushed back above 14 (its highest in a month). The USDollar rose 0.5% - 9th week in a row (despite EUR unch on the week) led by a 3% collapse in AUD and 2% in JPY & CAD. Gold and Silver dropped 3% on the week (worst in over 3 months, lowest in 8 months to $1230). WTI prices whipped around but ended -1% at $92. Of course, because it's Friday, the last hour saw manic VIX-selling, S&P futures buying (in 1 lots) to lift it magically off the lows to VWAP, but the S&P ended being the worst of the major US equity indices on the week (S&P <2,000; Dow <17,000).

Year-to-date, gold slipped to +2%, bonds are still leading but as the USD surged since August 'something' changed...

Not a pretty week for stocks - worst in six weeks with S&P the laggard!

As The S&P 500 loses 2,000...

And Dow loses 17,000...

VIX tried its best to get stocks higher into the Friday close...

ALL S&P sectors ended the week red led by Energy and Utes...

An ugly week for bonds...

Treasuries have worst 2-week run since the Taper Tantrum last year...

Where do they meet? (if at all?)

High-yield credit led the weakness on the week...

FX markets saw the US rise for the 9th week in a row (best run since Jan 2012) to fresh 14-month highs... but EUR ended unchanged - it was AUD, CAD, and JPY weakness that drove it

Ugly week for commodities. Gold tumbles most in over 2 months to 8 month lows...

Charts: Bloomberg