Debt-Limit-Delay Gains Purged On Punk Payrolls; Crypto & Crude Surge

Debt-Limit-Delay Gains Purged On Punk Payrolls; Crypto & Crude Surge

Interestingly, the dismally disappointing rise in non-farm payrolls today sparked a hawkish response (unemployment rate tumbled, supporting The Fed’s new trajectory) in money markets as 2022 contracts traded very actively (with earlier dates now seeing real odds of a hike)…

Source: Bloomberg

And End 2022 now pricing on at least one hike…

Source: Bloomberg

It was looking likely that for the 10th month in the last 12, a payrolls day would end higher for the S&P, but a late-day tumble (and the fact that this was the second monthly miss by more than 3 standard deviations), left the S&P red today.

Small Caps and Nasdaq were the biggest laggards on the day, but all the majors ended red (Small Caps oscillating around unch)…

The Dow ended the week as the biggest gainer while Small Caps slipped back into the red and Nasdqq gave up most of its gains…

Treasury yields ended the week higher and the curve steeper as every sudden bond buying spree was met with slow and steady selling pressure…

Source: Bloomberg

The Dollar ended the week higher, thanks to a rescue bid today after plunging into the red on the dismal jobs data…

Source: Bloomberg

Cryptos surged this week…

Source: Bloomberg

With Bitcoin back above $56k for the first time since May…

Source: Bloomberg

Gold ended the week flat while oil surged to a new multi-year high, leading the commodity complex…

Source: Bloomberg

WTI topped $80…

…for the first time since Oct 2014…

Source: Bloomberg

Finally, just when you though the risk of a USA Sovereign Default was gone…

Source: Bloomberg

It has merely been kicked down the road a few weeks as the following chart shows – the kink in the T-Bill curve is swelling once again…

Source: @BiancoResearch

This is far from over.

Tyler Durden
Fri, 10/08/2021 – 16:00

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