High-Yield Credit Hits 10-Week Wides As Stocks Bounceback To Unch

Despite an early dump on dismal data, US equity markets (except Trannies) 'v-shape-recovery'ed back up to unchanged or better (as Europe closed and POMO ended) on the heels of an increasingly more beta-sensitive AUDJPY rampfest. Trannies never really recovered (3rd down day in a row) and Russell was less exuberant in its dead-cat-bounce but the Dow and S&P closed very modestly green. High-yield credit markets continue to widen – now at 10-week wides (up 35bps from tights) – notably divergent from stocks. Away from the shenanigans in stocks, the USD ended unchanged; Treasury yields were up 1-2bps; and gold closed very modestly lower. Oil slipped 0.5% to $101.60. VIX closed unch. Only the Nasdaq is green post MH17 Headlines on 7/17 and The Russell 2000 is -1.9% and Homebuilders -9% year-to-date.

 

AUDJPY ruled the day…

 

Notable divergences intraday among the major indices…

 

Since MH17 Headlines, only the Nasdaq is green…

 

Builders not having a great year…

 

High yield credit did not v-shape recover today…

 

Treasury yields rose modestly as stocks boucned… long-end closes up 1-2bps, short-end 2-3bps.

 

Gold and silver were oddly not monkeyhammered today…

 

 

 

Charts: Bloomberg




via Zero Hedge http://ift.tt/1rYHh5f Tyler Durden

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