Bond Bloodbath Sparks Stock Slump; Dollar & Crypto Jump

Bond Bloodbath Sparks Stock Slump; Dollar & Crypto Jump

While bonds were making headlines on the business media, the real bloodbath was in Texas power markets with Spot Electricity hitting its $9000 cap..

Source: Bloomberg

But bond investors were really puking today, with 10Y up over 9bps testing 1.30%…

Source: Bloomberg

This is the biggest 3-day spike in yields since the election rebound…

Source: Bloomberg

The 7Y/10Y segment was the worst performer as we suspect swap and mortgage traders stepped into gamma- and delta-hedging…

Source: Bloomberg

As mortgage spreads have blown out the most aggressively since

Source: Bloomberg

Technicals seem to confirm 10Y breaking out also…

Source: Bloomberg

And the yield curve steepening is going vertical…

Source: Bloomberg

Is the market just full to the brim with fiscal and monetary largesse?

Real yields jumped to their highest since early January, led by gold…

Source: Bloomberg

Bitcoin topped $50k…

Source: Bloomberg

S&P hit the 3950 ‘Call Wall’ and stumbled…

TSLA tumbled back below $800 once again (as perhaps the limits of electrickery were exposed in the southern states’ chaos)…

Futures were holding up from yesterday’s gains but as Treasury yields surged, something snapped in stock-land. Small Caps and Big Tech were the day’s laggards and The Dow led with a green close…

Oil stocks led the way(again) along with financials (steeper curve)…

Source: Bloomberg

Notably the MSCI World index was up for the 12th straight day, its longest streak in 17 years (Nov 2004)…

Source: Bloomberg

Pot stocks managed gains today after a couple of ugly days…

Source: Bloomberg

And the original basket of WSB short-squeeze stocks sold off today ahead of the hearings…

Source: Bloomberg

VIX pushed notably higher today after crashing to a 19 handle on Friday…

As call buying continues to dominate put buying…

Source: Bloomberg

The dollar surged intraday, ramping to run stops from Friday before fading back…

Source: Bloomberg

Spot Gold prices fell back below $1800…

Source: Bloomberg

As the 50- and 200-DMA crossed over in a ‘death cross’…

Source: Bloomberg

Nattie prices jumped on the heels of the chaos across the southern states…

And the freezing temps wreaked havoc on Texas oil wells and refineries, sending oil production in the country’s largest crude-producing state plunging by more than two million barrels a day due to the storm, which has sent prices surging to $60 a barrel for the first time in a year. ..

Lumber has roared back to record highs on seasonally strong demand, prolonged maintenance, expansion delays, container shortages, and low producer stocks…

Source: Bloomberg

Finally, we note that stocks are the most ‘expensive’ relative to bonds since 2018 – is there an alternative after all?

Source: Bloomberg

Bye, Sue Herrera!

Tyler Durden
Tue, 02/16/2021 – 16:00

Start the Conversation

Your email address will not be published. Required fields are marked *


*