Bonds And Bullion Prices Bounce But Banks Bruised As Dollar Dumps
New York (Dec 29) Once again the opening ramp but it was lackluster as hopes for Dow 20,000 are dashed for now as pension rebalancing (and front-running tax-selling) accelerates...WTF was that idiotic panic buying atthe close in Small Caps!??
On the week, Trannies are worst...
VIX briefly tagged 13.5 today with The Dow now 200 points from Dow 20k...
Utilities are now the only sector green post-Xmas with financials underperforming... Financials biggest 2-day drop in 3 months
5Y yields dropped below 2.00% for the first time in 10 days, 10Y below 2.50%, and 3Y below 1.50% following the super strong 7Y auction...NOTE the 10Y yield briefly dipped lower post-Fed intraday but 30Y is -5bps...This is the best 2 day drop in 5Y yields (-10bps) since June 27th.
As a reminder, despite the non-stop spewing on mainstream media, the yield curve is notably flatter post-Trump... not steeper!
The USD Index tumbled most since november 1st...
Led by JPY strength (on bank derisking following Toshiba contagion)
USD weakness sent PMs and copper higher but crude fell after inventory data...
WTI broke its 8-day win streak...
Gold is now up 5 days in a row...longest streak since before election
But we note that of all the precious metals, only Palladium is green post-Trump...
For the first time in the contracts' history, the Jan/Feb Gasoline spread has moved into backwardation (Bloomberg reports that recent regional refinery outages at PES Philadelphia Energy Solutions Inc. and Irving Oil Lt.’s Saint John unit have limited supplies to New York Harbor, pushing front month contracts higher than the forward period).
