Treasuries seemed to shrug off the QE-on trade from yesterday in the lead up
to this morning's big disappointment from Bernanke. Gold lost it first and then
as the statement came - with no mention of hyperinflation, helicopters, or new
printers - so equities dumped - gapping down to converge with the rest of risk
assets. The USD rallied as its cloests relative neighbor in disaster the EUR
legged lower and the USD strength exaggerated commodity weakness further (Silver
and Copper worst but all falling). ES is back to the post-ramp open on cliff on
Friday at the magic 1340 level but momentum is not in its favor now and Treasury
yields are reverting lower now also. Financials were the early laggards and have
extended losses with GS back in the red and JPM down notably.
Yesterday's QE-on divergence has been fully unwound and now risk-off is correlating lower...
and commodities are being hit hard...
as the USD strengthens...
Charts: Bloomberg
Yesterday's QE-on divergence has been fully unwound and now risk-off is correlating lower...
and commodities are being hit hard...
as the USD strengthens...
Charts: Bloomberg
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