{"id":1406989,"date":"2023-08-17T20:00:00","date_gmt":"2023-08-18T00:00:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1406989"},"modified":"2023-08-17T20:00:00","modified_gmt":"2023-08-18T00:00:00","slug":"bonds-stocks-bitcoin-bullion-battered-as-yuan-the-yield-curve-rally","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/bonds-stocks-bitcoin-bullion-battered-as-yuan-the-yield-curve-rally\/1406989\/","title":{"rendered":"Bonds, Stocks, Bitcoin, & Bullion Battered As Yuan & The Yield-Curve Rally"},"content":{"rendered":"

Bonds, Stocks, Bitcoin, & Bullion Battered As Yuan & The Yield-Curve Rally<\/span><\/p>\n

\n

An ugly JGB auction overnight was trumped by yuan intervention overnight saw futures drift higher into the US open…<\/p>\n

Yuan rallied after 5 straight down days…<\/p>\n

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

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

Domestically, WMT beat (but cautious commentary), initial jobless claims fell, Philly Fed Manufacturing surged, but LEI was a shitshow<\/strong><\/a> for the 16th month in a row. However, the ‘good’ news dominated and Fed rate expectations rose hawkishly…<\/p>\n

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

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

…which weighed on stocks. Small Caps and Nasdaq led the charge lower but everything was a one-way waterfall in the afternoon…<\/p>\n

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

Once Europe was closed, the algos were in charge with 0-DTE traders running the show as a negative gamma accelerated the waterfall lower…<\/p>\n

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

Source: SpotGamma<\/em><\/a><\/p>\n

The Dow joined the S&P, Nasdaq, and Small Caps in closing below its 50DMA. <\/strong>Dow was last below its 50DMA in June. Small Caps are getting close to their 100- and 200-DMAs. The S&P closed below the key 4,400 level…<\/p>\n

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

‘Most Shorted’ stocks are down for 12 of the last 13 days…[Pro subs would have know that was the day that the top was in]<\/em><\/a><\/p>\n

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

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

Implied correlation bounced – just like we said it would<\/a> – right off those 2017\/18 lows…<\/p>\n

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

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

Regional bank stocks were down again today, back at the kneejerk lows from the SVB puke…<\/p>\n

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

Bonds and stocks are tanking together (we explained why here<\/a>)… Are Chinese banks selling USTs to ‘fund’ their yuan intervention?<\/a><\/p>\n

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

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

Treasury yields were mixed with the short-end outperforming (2Y -2bps, 30Y +5bps). On the week, the short-end is notably decoupled from the rest of the curve…<\/p>\n

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

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

Which saw the yield curve steepen (dis-invert) further…<\/p>\n

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

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

Some worry that USTs are being sold to fund yuan intervention…<\/p>\n

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

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

The dollar was unchanged today – recovering its yuan-intervention-losses overnight…<\/p>\n

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

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

…but is holding above its 200DMA…<\/p>\n

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

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

Bitcoin was clubbed like a baby seal, back below $28,000…<\/p>\n

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

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

But if you are in Argentina, Bitcoin just exploded to a new record high after the recent primary…<\/p>\n

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

Gold continued to slide lower (spot below $1900). If you squint you can see an intraday pattern around the London Fix…<\/p>\n

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

Amid all that selling, we note that oil prices rallied, with WTI back above $80…<\/p>\n

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

Finally, none of today’s waterfall-like move in stocks should have been a surprise as we warned about fragility due to ‘negative market gamma’<\/a>…<\/p>\n

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

…and CTA thresholds crossed<\/a>…<\/p>\n

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

We wonder if NVDA’s earnings next week will be the catalyst?<\/p>\n

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

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

A little bounce after tomorrow’s OpEx and then (will J-Hole puncture the bubble)…<\/p>\n

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

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

Would that be the real pain trade?<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nThu, 08\/17\/2023 – 16:00<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/bonds-stocks-bitcoin-bullion-battered-yuan-yield-curve-rally<\/a>\u00a0<\/p>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Bonds, Stocks, Bitcoin, & Bullion Battered As Yuan & The Yield-Curve Rally An ugly JGB auction overnight was trumped by yuan intervention overnight saw futures…<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1406989","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1406989","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"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1406989"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1406989\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1406989"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1406989"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1406989"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}