Bond Yields Crash To Record Lows, Stocks Barely Bounce After Bloodbath
After the 4th biggest point drop in US stock market history, this is all equity dip-buyers could manage? This won't end well...
China was mysteriously panic-bid overnight after plunging at the open after US stocks crashed...
(Click on image to enlarge)
Source: Bloomberg
More stimulus promises did nothing to help European stocks...
(Click on image to enlarge)
Source: Bloomberg
EU banks broke to a new cycle low...
(Click on image to enlarge)
Source: Bloomberg
After ECB promised more stimulus, Bund yields crashed to a stunning record low of -71bps (down 21 of last 24 days)...
(Click on image to enlarge)
Source: Bloomberg
Also of note, in the crazy world of negative rates, the 50Y EU Swap rate has dropped below zero for the first time ever...
(Click on image to enlarge)
Source: Bloomberg
US equities whipsawed by headline-reading algos early on as China threatened retaliation, WMT surged, and China offered some hope for a deal before Trump confirmed on his terms...
(Click on image to enlarge)
An afternoon buying spree (paging Steve Mnuchin) lifted The Dow, S&P, and Nasdaq into the green for the day
(Click on image to enlarge)
On the week, Trannies are the biggest losers
(Click on image to enlarge)
The Dow bounced back above its 200DMA...
(Click on image to enlarge)
Small Caps tumbled to May lows and bounced a smidge, dramatically below the 200DMA...
(Click on image to enlarge)
The Dow was rescued by WalMart's big gains...
(Click on image to enlarge)
But GE crashed on Markopolous exposures...
(Click on image to enlarge)
Defensives dominated the days...
(Click on image to enlarge)
Source: Bloomberg
Treasury yields tumbled on the day (again) with the short-end outperforming this time (2Y -7bps, 30Y -3bps)...
(Click on image to enlarge)
Source: Bloomberg
30Y broke below 2.00% for the first time ever (and 2Y broke below 1.50% for the first time since 2007 as did 10Y)...
(Click on image to enlarge)
Source: Bloomberg
And the 10Y Yield is testing back towards record lows...
(Click on image to enlarge)
Source: Bloomberg
The yield curve story was mixed - 2s10s rose back from inversion...
(Click on image to enlarge)
Source: Bloomberg
BUT remember the 3m10Y - which is the most accurate recession indicator - remains deeply inverted...
(Click on image to enlarge)
Source: Bloomberg
What a difference a year makes - the entire curve now below 2.00% but the entire curve was above 2.00% exactly one year ago...
(Click on image to enlarge)
Source: Bloomberg
And TIPS markets are pricing in a deflationary future...
(Click on image to enlarge)
Source: Bloomberg
Overnight weakness in the dollar ramped higher once again today (starting to see a pattern here)...
(Click on image to enlarge)
Source: Bloomberg
Yuan weakened modestly overnight (even as the PBOC fixed it stronger again)...
(Click on image to enlarge)
Source: Bloomberg
Which is notable as China appeared to start trying to squeeze the shorts with a liquidity squeeze overnight...
(Click on image to enlarge)
Source: Bloomberg
And it appears Hong Kong authorities intervened to keep the HKD away from the low-end of the USD peg...
(Click on image to enlarge)
Source: Bloomberg
Cryptos got hit hard overnight but bounced back as Europe opened...
(Click on image to enlarge)
Source: Bloomberg
But Bitcoin bounced back above $10k by the end...
(Click on image to enlarge)
Source: Bloomberg
Oil and gold diverged once again today as did copper (lower) and silver (higher)...
(Click on image to enlarge)
Source: Bloomberg
WTI is back below $55...
(Click on image to enlarge)
Gold futures' bounce off $1500 continues...
(Click on image to enlarge)
Global Negative-yielding debt topped $16 trillion for the first time ever, and gold tracked it perfectly (but bitcoin appears to have decoupled for now)...
(Click on image to enlarge)
Source: Bloomberg
Treasury yields imply gold should be higher or copper lower...
(Click on image to enlarge)
Source: Bloomberg
Finally, we have seen the emergence of another ominous Hindenburg Omen...
(Click on image to enlarge)
Source: Bloomberg
We all know who to blame... right Mr. Trump?
"The Fake News Media is doing everything they can to crash the economy because they think that will be bad for me and my re-election. The problem they have is that the economy is way too strong and we will soon be winning big on Trade, and everyone knows that, including China! "
At least the Fed wasn't immediately blamed this time.
Disclosure: Copyright ©2009-2019 ZeroHedge.com/ABC Media, LTD; All Rights Reserved. Zero Hedge is intended for Mature Audiences. Familiarize yourself with our legal and use policies every ...
more