Stocks & Bonds Are Plunging As Powell Fails To Deliver

Stocks & Bonds Are Plunging As Powell Fails To Deliver

No hints at a ‘Twist’, refuses to speculate on repo issues, no pushback against recent bond vol, and no mention of SLR exemption.

This was the closest he came to saying anything of note:

“We monitor a broad range of financial conditions and we think that we are a long way from our goals,” he said.

“I would be concerned by disorderly conditions in markets or persistent tightening in financial conditions that threatens the achievement of our goals.”

Which is just more of the same generic platitudes, and that is not what the market wanted to hear…

Treasury yields are spiking with 10Y well above 1.50%…

And 5Y is back above the critical 75bps level

Real yields are surging, and weighing on gold…

And as rates spike, stocks slump…

And the dollar is spiking…

Well, you have your disorderly markets – so get back to work Mr.Powell.

 

Tyler Durden
Thu, 03/04/2021 – 12:32

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