Bonds & Bullion Bid, Stocks Skid As China Currency Collapse Continues

The storms are coming…

 

For the 11th day of the last 12, the Yuan has weakened to fresh 6 year lows for Offshore…

 

And the effects are starting to ripple through markets.

US equity futures show the desperate effort to pump stocks green around the US open… with an ugly close

 

Small Caps clung to unch as much as possible but major indices ended lower led by Trannie weakness…

 

Leaving the S&P closing near 3-month lows… (2125.77 lows on 9/14)

 

VIX was smashed above 17 briefly at the open but drifted lower all day… unable to spark any bounce in stocks…

 

Notably "Most Shorted" stocks have considerably underperformed the last 2 days (ammo for a squeeze?)

 

Deutsche Bank stock slipped once again after an early rally…

 

Treasury yields collapsed from some overnight weakness in bonds with 30Y yields dropping over 7bps high to low (and the curve flattening)…

 

The USD tested new cycle highs overnight before being sold all day to close lower…

 

Crude fell back below $50 but the weaker USD appeared to help PMs… (as copper kept sliding on China concerns)

 

Charts: Blooomberg

Bonus Chart: A reminder of Industrial Production weakness…

 

via http://ift.tt/2eh87cu Tyler Durden

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