{"id":1255711,"date":"2023-04-24T14:10:37","date_gmt":"2023-04-24T18:10:37","guid":{"rendered":"https:\/\/bugaluu.com\/news\/bonds-bid-stocks-skid-as-debt-ceiling-doubts-soar\/1255711\/"},"modified":"2023-04-24T14:10:37","modified_gmt":"2023-04-24T18:10:37","slug":"bonds-bid-stocks-skid-as-debt-ceiling-doubts-soar","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/bonds-bid-stocks-skid-as-debt-ceiling-doubts-soar\/1255711\/","title":{"rendered":"Bonds Bid, Stocks Skid As Debt-Ceiling Doubts Soar"},"content":{"rendered":"
\"\"<\/a><\/div>\n

Bonds Bid, Stocks Skid As Debt-Ceiling Doubts Soar<\/span><\/p>\n

\n

The T-Bill curve is extremely dislocated<\/strong> following Friday’s “worst case scenario” tax receipts data<\/a><\/strong>…<\/p>\n<\/p>\n

And the debt ceiling anguish is most clear in the short-dated cost of protection against a technical default by The US – which has soared today to its highest level ever<\/strong> (far above the Great Financial Crisis, debt downgrades, and prior debt ceiling crises)…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

While equity markets remained largely ignorant of this threat again today (Nasdaq was down today but The Dow and S&P managed small gains)…<\/p>\n

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All eyes will be on FRC’s earnings tonight after it rallied over 10% today (and is expected to swing +\/- 23% after the earnings hit based on options pricing). Putting that 10% jump in context however…<\/p>\n

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The vol term structure shows the general level of anxiety ahead of rising with the data this week, FOMC next week, and then the imminent X-Date…<\/p>\n

\"\"<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

But we do note that with today’s release of the 1-day VIX, that 0-DTE traders lifted vol while (normal) VIX drifted lower from its spike open…<\/p>\n

\"\"<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Notably, the big short squeeze from mid-April (post-Payrolls) is rapidly running out of steam with ‘most shorted’ stocks down again today…<\/p>\n

\"\"<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Treasury yields tumbled today, erasing all of Friday’s spike, with the belly outerperforming…<\/p>\n

\"\"<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Rate-hike expectations for next week rose to post-SVB highs (92% odds of +25bps)…<\/p>\n

\"\"<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

The dollar ended the day lower, back at last week’s lows. Notably, the dollar was bid during the Asia session then dumped in Europe and US…<\/p>\n

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Source: Bloomberg<\/em><\/p>\n

Bitcoin touched $28,000 overnight, only to fall back to touch $27,000 this morning, and found support there…<\/p>\n

\"\"<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Gold managed gains on the day but spot prices remain below $2000…<\/p>\n

\"\"<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Oil prices bounced today, with WTI back above $79, after almost erasing all the post-OPEC+ production cut gains…<\/p>\n

\"\"<\/a><\/p>\n

F<\/em>inally, circling back to where we started, while vol has been drifting generally lower – ignoring the earnings avalanche, the debt ceiling, and FOMC uncertainty – Bloomberg notes that the price to hedge, as measured by the spread between implied volatility for puts and calls, is spiking <\/strong>and has climbed above the latest peak in March during the worst of the banking crisis.<\/p>\n

\"\"<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

The move suggests traders are bracing for bigger moves to the downside ahead<\/strong>.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nMon, 04\/24\/2023 – 16:00<\/span><\/p>\n

From:Zerohedge<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Bonds Bid, Stocks Skid As Debt-Ceiling Doubts Soar The T-Bill curve is extremely dislocated following Friday’s “worst case scenario” tax receipts data… And the debt…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1255711","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-5gFp","jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1255711","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1255711"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1255711\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1255711"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1255711"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1255711"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}