This week's 35bps rise in high-yield credit spreads (or ~10%) is the worst since at least June of last year and anxiety spread through other asset-classes appropriately as cheap-buyback-funding and liquidity concerns weighed on all equities – most aggressively small caps. The Russell 2000 is down around 4% from FOMC (and for the year) even with today's buying-panic this afternoon trying to rescue yesterday's losses. Much of today's moves were thanks to The Bill Gross Effect – Treasury short-end sold (2Y-5Y +5bps, 30Y unch), corporate bond spreads jumped wider (HY +20bps, IG +4bps), and European bonds (and German stocks) lurched lower. Markets recovered some of the early move but 2Y closed at 2014 yield highs. The USD closed 1% higher for the 11th week in a row to June 2010 highs. WTI crude close +1.5% on the week, gold unchanged, and copper and silver lower. VIX jumped 22% on the week, closing above 14.5.
Stocks rescued from really dismal performance today…as the machines desparately tried to recover yesterday's losses…
On the week, it's all red… led by Russell 2000 weakness
And post-FOMC, redderer… (but note that the Dow was ramped to almost unchanged)
Credit's early weakness recovered a little but nothing like stocks…
as HY credit suffered its worst week since June 2013…
Stocks and the long-bond decoupled…
Stocks and JPY recoupled…. then faded…
Stocks and VIX remain in love…
Treasuries very mixed on the week as The Bill Gross Effect dominated today…
The USD rose for the 11th week in a row, with CAD and AUD the weakest (but EUR driving)
Pushing the USD Index to June 2010 highs
Despite USD strength, gold closed unchanged and oil rose…
Charts: Bloomberg
via Zero Hedge http://ift.tt/1ncMTuc Tyler Durden