Disastrous Bond Auction Sparks Rate-Rout Selloff In Stocks

Bond bulls just had a 'Cliffhanger' moment...

Payrolls, Powell, and Panic at the Auction have sparked the biggest bond bloodbath since Trump was elected in Nov 2016...

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And as bond yields exploded higher, something odd happened... stocks dumped too...

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Suggesting Risk-Parity funds forced to delever/rebalance as the bond legs blow up.

30Y Yields exploded to 6-week highs...

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The Dow managed to hold gains (thanks to United Health jumping on Trump's backdown) and S&P limped back into the green but Nasdaq ended red. Small Caps were worst on the day with Trannies best...

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NOTE - around 1300ET, Trump tweeted about China disappointment and sparked selling.

Trannies and Small Caps remain red on the week.

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Dow topped 27k for the first time...

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And President Trump loved it...

The S&P closed at 2999.89!! As one veteran trader noted, "this is all gamma trap!"

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Defensive stocks were pummeled (interestingly catching down to unch for the week with Cyclicals)...

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Bonds weren't the only bloodbath of the day; Bed, Bath, & Beyond was battered...

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UnitedHealth surged on the White House backpedal...

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Chinese stocks have gone nowhere since Monday's dump...

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European markets continued to diverge dramatically with Germany slammed and Italy bid...

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Banks and the yield curve...

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Treasury yields exploded higher on the day with the long-end dramatically underperforming...

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The yield curve (3m10Y) remains inverted... just...

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