Bonds Bloodbath As Jobs Flop, Gold Pops, Dollar Drops

After a weak ISM manufacturing employment print, deteriorating initial claims data, and now ADP’s big disappointment, the jobs picture is deteriorating fast in America…

Source: Bloomberg

But don’t let that fool you… there’s always hope for ‘stimulus’… that lifted stocks from their ugliness intraday. But after yesterday’s exuberance, today was quiet-ish – Small Caps led the day as Nasdaq lagged but the overall moves were modest…

The Small Cap outperformance relative to mega-tech look familiar again…

One thing is for sure… it’s not the economy, stupid!

Source: Bloomberg

Global Central Banks are giving it all they can…

Another day, another meltup in Energy stocks…

Source: Bloomberg

Value continues to hold its gains versus momentum but, despite the recent yield spike, remains notably decoupled from its bond-regime from October…

Source: Bloomberg

CRM crashed today (and WORK was lower) after they announced their hugely expensive deal…

But still, no one wants any protection…

Source: SpotGamma

But the big headlines of the day were saved for the bloodbathery in bond-land (note the surge in yields hit around 7amET again and stalled at the EU close)…

Source: Bloomberg

10Y Yields pushed up to recent resistance (election and vaccine spike highs)…

Source: Bloomberg

The yield curve soared to its steepest since Nov 2017…

Source: Bloomberg

The dollar popped and dropped on the day, ending lower once again…

Source: Bloomberg

Dollar’s reversal today came on Yuan strength as headlines suggested Biden would not roll back Trump tariffs…

Source: Bloomberg

Bitcoin held steady today around the $19k mark…

Source: Bloomberg

And – for a change – gold paid attention to the dollar weakness and rallied…

…with the precious metal rising back above its 200DMA…

Source: Bloomberg

WTI ripped higher on the heels of headlines proclaiming “headway” was made among OPEC members (despite a notable surge in product stocks)…

 

Finally, we better hope that Copper is wrong or the world’s stock market investors are in for a hell of a surprise when rates soar…

Source: Bloomberg

Though we have seen this kinda of disconnect before… and it didn’t end well…

Source: Bloomberg

And bear in mind that bonds are now ‘cheaper’ than stocks once again…

Source: Bloomberg