High-yield credit markets saw spreads widen 12bps on the week and high-yield bond prices fell notably as energy stocks faded after Monday's exuberant dead-cat-bounce. Trannies tumbled today off early exuberance gains, ending the week the biggest loser despite lower oil prices. Today's jobs data sparked initial "good news is bad news" weakness, was ramped to Europe's close then faded with Nasdaq and S&P red post-Payrolls. Treasury yields rose on the day (and week) with dramatic flattening as 2Y-7Y maturities up 17-20bps on the week and 30Y only 7bps higher. 2Y yields exploded 17bps for the worst week since Feb 2011 to Apr 2011 highs. The USDollar closed higher today (up 1.25% on the week) led by dramatic JPY weakness (and EUR fading). Despite USD strength, gold gained 2% on the week and silver +5.4% (best week in 6mo) even as oil lost 0.75% for its lowest close since July 2009. VIX tested down to an 11 handle but closed peeking back into a 12 handle, lower on the week. For the 3rd day of the last 4, internals created a Hindenburg Omen cluster.
Hindenburg Omen cluster is building… 3rd in 4 days
US equity markets (futures) post-payrolls…
The Dow tried to get to 18,000 to prove jobs data was awesome-tastic… but could only manage 17,991.19… as we closed there was the ubiquitous 'fat finger' to try and slam the close
On the day session, early gains faded quick after Europe closed… but as soon as the S&P crossed red the ramp efforts began with VIX
Leaving Trannies and Nasdaq down on the week…
HY credit notably underperformed…
On the week, Treasury yields are notably higher with signficant flattening…
5Y yield rose most in 9 months today and had their biggest week since Aug 2013
And 2Y Yields exploded on the week…
The USDollar gained 1.25% on the week, led by JPY weakness and EUR fading…
And Despite the USD strength gold and silver surged and oil faded… (gold's best week in 2 months, silver's best in 6 months, oil down 9 of last 10 weeks)
WTI's week was all about the bounce and fade…
Charts: Bloomberg
Bonus Chart: Energy Sector High Yield Bond risk exploded…
via Zero Hedge http://ift.tt/1AwuVoG Tyler Durden