Bonds and Bullion are bid and the yield curve crashed as the Santa Claus rally fails to appear for the second day.
Video length: 00:00:32
For the second day in a row, stocks went nowhere despite the promise of the Santa Claus rally… (NOTE the somewhat ridiculous instaramp in the last 2 minutes to get stocks green)
Perhaps it is because, as Kevin Duffy noted earlier, “8 out of 10 of the best sentiment indicators are in the 99th percentile of bullishness over the past ten years (a period of mostly bull market optimism!).This is unprecedented…”
FANG Stocks are down for the 6th day in a row… (the longest losing streak since Nov 4th, 2016)
banks have been under pressure this week…
VIX jumped somewhat notably today (3rd day up in a row) – NOTE the VIX hammering into the European close and then it snapped…
Despite a heavy tail in today's 5Y auction, yields crashed across the curve and the yield curve flattened dramatically…
Perhaps a few funds are seeing the ‘value' in bonds?
Notably 10Y yields dropped back below 2.4% (YTD unch)…
Which is notable, as Strategas points out, a 12/31 close above 2.44% would be the 3rd year of rising rates in a row – the longest stretch since 1981…
The yield curve crashed most since Brexit to a new cycle low…(lowest close since Oct 2007)
