Only one clip for today really…
Well, instead of starting with stocks, Bonds and FX dominate the headlines today – a flash-crash across the Treasury yield curve and a collapse and failed intervention in the Brazilian Real.
Treasury yields topped around 5amET this morning (with 10Y unable to reach 3.00% despite a good run at it in the last few days). The bid started in bonds, picked up through the US cash open, then accelerated dramatically at around midday ET, flash-crashing 10-12bps across the entire treasury market…
With massive volume flooded through futures – more volume than on the payrolls print…
10Y Treasury yields were unable to break 3.00% before tumbling..
The yield curve flattened on the day also …
Meanwhile, the most significant of EM FX markets – Brazil – was in utter turmoil as another $3 billion intervention failed miserably and the Real crashed to new cycle lows…
Putting that in context, it’s really ugly…
We also note that Brazil halted its bond market trading and there is an unmistakable relationship between the timing of the Real’s plunge and the collapse in Treasury yields…
And that’s why what happens in Brazil matters! Everything is connected.
Tech stocks extended their underperformance from yesterday afternoon…
Trannies remain red on the week as Dow outperforms…
VIX briefly popped its head back above 13 today but was quickly slapped lower…
After spiking to its highest levels since the peak of the dotcom bubble in March 2000, the S&P tech sector relative to financials has
The Dollar Index did it again – basically flatlining for 16 straight days… (1168, 1170, 1169, 1168, 1169, 1168, 1171, 1173, 1177, 1170, 1171, 1172, 1171, 1172, 1170, 1170…)
But while the broad dollar index has gone nowhere, EM FX has collapsed relative to it…
Cryptos also flatlined today with all holding gains for the week…
Oil outperformed but copper faded off early gains as gold and silver trod water…
Three days in a row now gold has spiked, finding support on any drop at the $1300 level…
Copper/Gold and 10Y Yields have recoupled once again…
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