{"id":1428658,"date":"2023-09-21T20:00:00","date_gmt":"2023-09-22T00:00:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1428658"},"modified":"2023-09-21T20:00:00","modified_gmt":"2023-09-22T00:00:00","slug":"bond-bloodbath-trounces-tech-batters-bitcoin-banks-bullion","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/bond-bloodbath-trounces-tech-batters-bitcoin-banks-bullion\/1428658\/","title":{"rendered":"Bond Bloodbath Trounces Tech; Batters Bitcoin, Banks, & Bullion"},"content":{"rendered":"

Bond Bloodbath Trounces Tech; Batters Bitcoin, Banks, & Bullion<\/span><\/p>\n

\n

A central bank smorgasbord started the day off with a bang of confusing cross-currents (SNB\/BOE unch; Riksbank\/Norges hiked and hawkisher; and Turkey hiked in line) – all sending the dollar higher further. Domestically, just as much confusion: a hot labor market (claims plunging), and inflation fears rising (Philly Fed prices paid), along with housing getting hammered (existing home sales slump).<\/p>\n

But it was still The Fed that was on everyone’s mind, and the market’s expectations for rate-cuts next year are quickly be reduced<\/strong> from over 6 rates cuts implied in July to around 3 cuts in 2024 now…<\/p>\n

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

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

We suspect it may need to go lower than that (fewer cuts still).<\/p>\n

Treasuries were mixed (basically some giveback to yesterday’s moves with the short-end outperforming – 2Y -3bps, 30Y +11bps), but combining the two days, all yields are still significantly higher…<\/p>\n

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

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

…leaving the yield curve (2s30s) steeper (less inverted)…<\/p>\n

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

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

For context:<\/p>\n

2Y yields hit their highest since July 2006<\/p>\n

5Y yields highest since Aug 2007<\/p>\n

10Y highest since Nov 2007<\/p>\n

30Y highest since April 2011<\/p>\n

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

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

All of which weighed on stonks with the longest-duration (tech) hit hardest. Nasdaq is down over 3% post-FOMC. The Dow was the least ugly horse in the glue factory and is down almost 2% post-Powell…<\/p>\n

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

As we detailed earlier, the key level to watch is the medium-term momentum threshold of 4353, <\/strong>below which the CTA community will start to flip negative and selling will accelerate…<\/p>\n

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

The S&P is back at 3-month lows (and we note that Small Caps are up just 1% year-to-date).<\/p>\n

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

All the majors are back below their 100DMAs with Small Caps back below their 200DMA…<\/strong><\/p>\n

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

And VIX broke back above 17…<\/p>\n

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

Banks broke down to initial SVB-puke lows…<\/p>\n

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

The dollar extended gains intraday to its highest since March 2023 before giving some back…<\/p>\n

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

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

Bitcoin broke back below $27,000 as stocks started to sink…<\/p>\n

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

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

Despite plenty of intraday vol, oil prices ended around unch with WTI sliding back below $90 from its midday bounce highs…<\/p>\n

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

Gold chopped around but ended notably lower (despite heavy call demand)…<\/p>\n

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

Finally,\u00a0NVDA losing the battle?<\/p>\n

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

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

A new cycle high for real rates… and S&P valuations starting to crack…<\/p>\n

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

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

Can The Fed stand pat if the S&P loses 5 turns of fwd P\/E? Do you feel lucky?<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nThu, 09\/21\/2023 – 16:00<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/bond-bloodbath-trounces-tech-batters-bitcoin-banks-bullion<\/a>\u00a0<\/p>\n

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

Bond Bloodbath Trounces Tech; Batters Bitcoin, Banks, & Bullion A central bank smorgasbord started the day off with a bang of confusing cross-currents (SNB\/BOE unch;…<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","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-1428658","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-5ZES","jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1428658","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=1428658"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1428658\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1428658"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1428658"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1428658"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}