Hawkish Fed Minutes Spark VIX Slam, Dow Highs Stop-Run

Despite a more hawkish-than-expected Fed minutes, investors appeared to be reducing exposure to the USD (modestly as EURUSD briefly tagged above 1.05 and buying bonds across the curve (with the belly outperforming) to start. However, that quickly reversed and left stocks mixed with banks just green post-Minutes, and the USD limping higher.

The initial reaction to the hawkish Fed minutes was the ubiquitous VIX slam which sparked algo buying panic running stops above the opening Dow highs...

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5s, 7s, and 10s are rallying most post-minutes... 

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Dollar Index at the low of the session... 

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Notably Fed Funds Futures are unch post-Minutes indicating just two rate hikes still.. 

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Then it all reversed with stocks rallying and bonds and bullion leaking... 

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But moves are all very modest.