Stocks Puke Back Post-Payrolls Gains As Yields Soar; Bullion Battered
The 10Y Treasury yield is back above 3.00%, spiking over 10bps and providing fuel for equity traders to BTFD…
However, the exuberance is misplaced as yields are soaring on the back of huge rate-locks being placed in a relatively illiquid market (absent The Fed) as Bloomberg reports 12 borrowers kicked off new US investment-grade bond sales on Monday morning in New York, pouncing on calm financial markets to get deals done.
Bloomberg reports that most aren’t expected to be sizable, with about $10 billion expected to price by the end of the session, but it would be the busiest day by number of bond sales since May 10.
It appears the realization that Treasury yields are not rising on ‘fundamental’ growth hopes(or inflation) prompted an immediate response from equity investors who puked stocks back into the red post-Payrolls…
Does the S&P have to catch down?
Gold tanked back below $1850..
As the dollar surged…
Bitcoin started to give some back as tech floundered, but is still up notably on the day.
Additionally, the week is expected to be front-loaded as dealers continue to work around waves of volatility seeking price stability for clients. In other words, the driver of this surge in yields won’t last.
Mon, 06/06/2022 – 11:30