How Tesla and US Treasury bondholders felt this morning…
The fun and games started last night when The Bank of Japan decided to offer an unlimited bid for 10Y JGBs at 11bps (well above their trading level) as a signal to the market. This was the first open-ended bid since Feb…
JGB yields spiked over 5bps on the news.
This rippled through Europe, with Bunds extending their yield spike to one-month highs…
And 10Y US Treasuries spiked – extending Friday’s surge – to the highest in 5 weeks – to the level before The Fed hiked rates…
This is the biggest 2-day spike in 10Y Yields since Feb 6th (when the XIV collapsed sparked all sorts of chaos in the RP funds).
The huge spike in yields has, rather coincidentally, recoupled bonds and stocks in the US markets…
The Dow trod water all day long (ending lower), Trannies outperformed…
FANG dip-buyers were back…
Tesla Stocks and Bonds were ugly..
“Most Shorted” stocks dumped at the open and were squeezed higher into the European close…
The last two days have seen huge surge sin bond yields, both starting to ramp at 0830ET…
The spike in Treasury yields broke the 21-day-streak of closes 10Y closes with a 2.8x% handle…
And the yield curve steepened dramatically…in Japan, Germany, and US…
The US Yield curve is at its steepest in 4 weeks…
The Dollar rebounded intraday to a modest gain (retracing around Fib38.2% of the Trump drop)…
The Peso spiked late on as Trump made positive comments about AMLO…
And Offshore Yuan tumbled to its weakest close since June 2017…
Cryptos are higher from Friday’s close with Bitcoin leading the way..
Bitcoin pushed well above $7700 – its its highest since May…(BTC is +35% from the June lows)…
Commodities were all lower on the day…
With oil traders entirely ignoring the rising rhetoric between Trump and Iran…
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