Fed’s Taper Talk Tanks The Dollar, Oil, & Bond Yields; Stocks PukeZeroHedge News

Fed’s Taper Talk Tanks The Dollar, Oil, & Bond Yields; Stocks Puke

The Fed appeared to hint at tapering its massive bond-buying bonanza and markets went a little bit turbo. Gold and bonds rallied notably while the dollar dropped and stocks had no bloody idea what to do, so they collapsed…

US equity markets shifted into chaos mode – despite all the gamma-squeeze ammo still available ahead of Friday’s opex – whipsawed around significantly before puking lower in the last hour to close down around 1%…

Stonks to The Fed…

HOOD was up dramatically ahead of tonight’s earnings, despite the general market maelstrom…

Energy stocks were the day’s worst performers, Consumer Discretionary was the only sector to manage to hold gains…

Source: Bloomberg

Cyclicals were hardest hit after FOMC but Defensives were also sold…

Source: Bloomberg

Growth and Value were dumped together after The Minutes…

Source: Bloomberg

VIX spiked up towards 19.5…

Treasuries were bid after the release of the FOMC Minutes, erasing the day’s losses as the long-end actually saw yields lower on the day…

Source: Bloomberg

The 10Y Yield dropped back to 1.26% – approximately unch for the day…

Source: Bloomberg

The dollar was clubbed like a baby seal after the Minutes…

Source: Bloomberg

Despite the dive in the dollar, cryptos didn’t really do too much, shrugging off China’s continuing crackdown and Kashkari’s ignorant statement…

Source: Bloomberg

WTI tumbled to a $64 handle for the first time since May…

Gold chopped around today but rallied after The Fed Minutes to end unchanged…

Finally, fear that the U.S. Treasury may get to the point where it cannot meet its debt obligations this fallis starting to show up more seriously in the Treasury bill market. As Bloomberg notes, there has been an aversion to bills ranging from mid-October to the end of November that has caused yields in those securities to rise, creating a sort of hump in the bill curve.

Source: Bloomberg

That’s because some investors have been shunning those maturities for fear of a delayed payment or technical government default.

But then again, this is a problem as ‘soft’ data is starting to lose momentum rapidly in the absence of more stimmies…

Source: Bloomberg

“Probably nothing”, right? Or is The Fed ‘tapering’ into a slowdown?

Tyler Durden
Wed, 08/18/2021 – 16:00Read More

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