Treasuries rallied from the pre-open release of inflation data this morning and never looked back (with 30Y unch on the week and 5Y -4bps). Stocks tumbled notably through the US open but recovered as Europe closed hovering quietly around VWAP all afternoon. The rally back in stocks coincided with a drop in VIX which smacked of hedges being lifted and exposure being reduced into the momentum-ignoted strength. Gold and silver saw weakness (though the latter is still +1% on the week). The USD weakened notably as Europe closed with some significant CHF buying. Stocks closed ugly…as VIX was significantly bid (up for the 5th day in a row).
VIX closed higher for the 5th day in a row – for the first time in 2013…
Stocks dipped from the US open, ripped from the EU close, then dumped at the US close…
JPY carry was not supportive at all… and correlations have broken
Anxiety is high and bonds were bid (especially after CPI)
as was CHF…
Gold ansd Silver jumped around the US equity open but quickly fell back (and notably appeared to drop into the low inflation print)…
Charts: Bloomberg
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via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/1–R5eTZmas/story01.htm Tyler Durden