Stocks Spooked As Treasury Yields Surge

Stocks Spooked As Treasury Yields Surge

Despite explosive earnings overnight, US equity markets are tanking this morning as the surge in Treasury yields spooks investors.

The Dow and Small Caps are now red post-Fed…

As SpotGamma notes, the Vol Trigger line also pushed higher to 4170 which is now considered critical support… after the S&P topped the psychologically important 4200 level…

With gamma peaking around that level…

10Y yields have reversed the post-Fed gains and then some, pushing back up, rapidly, to two-week highs…

Will Powell and his lackeys start jawboning again?

Remember, DoubleLine’s Jeff Gundlach warned “The Fed will allow the market forces to take yields to higher levels [10Y 2.25%] before stepping in,” adding that the US stock market is very overvalued by virtually every important metric.

Tyler Durden
Thu, 04/29/2021 – 10:24

Share DeepPol