**Stocks, Bonds, Gold, & Crypto Slide As US Sovereign Risk Roars To Record High**
Stocks, Bonds, Gold, & Crypto Slide As US Sovereign Risk Roars To Record High
A glimpse at the short-end of the yield curve shines a bright light on market stress around the debt-ceiling X-Date being dragged closer. Bills that mature within a month are dramatically bid, while Bills that mature after a potential sooner-than-expected X-Date are bidless...
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_Source: Bloomberg_
The yield curve itself shows that huge kink more clearly...
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_Source: Bloomberg_
And that is reflected in the surge to record highs for short-dated USA sovereign protection costs...
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_Source: Bloomberg_
But while USA risk is rising, US equity risk has been falling all week (to its lowest close since Nov '21)...
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_Source: Bloomberg_
However, as VIX tumbled to cycle lows this week, VVIX is notably decoupling from it across today's OpEx...
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_Source: Bloomberg_
Stocks suffered their worst week since March 10th (SVB collapse) with Nasdaq the biggest loser and Small Caps actually managing small gains...
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Despite squeezes everyday this week, 'Most Shorted' stocks ended lower...
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_Source: Bloomberg_
Energy stocks were the weakest this week while Staples and Real Estate outperformed...
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_Source: Bloomberg_
As Defensives outperformed Cyclicals...
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_Source: Bloomberg_
FSOC voted to tighten up regulation on the financial system (including non-banks) but while regional banks were up on the week, marginally, they are well off the week's highs...
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...and remain just drooling along at the post-SVB lows in context...
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_Source: Bloomberg_
Treasury yields ended the week higher (with the short-end underperforming) after today's post-PMI spike changed the week...
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_Source: Bloomberg_
Fed Chair Powell's favorite yield-curve-based recession-signal (18m fwd 3m to spot 3m yield spread) hit its most inverted ever this week....
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_Source: Bloomberg_
Rate-hike expectations continue to rise for next week (now 92% odds of a 25bps hike) but we also saw the entire STIRs curve shioft hawkishly (with June now at 25% odds of a 25bps hike) and the terminal rate back above 5.00%...
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_Source: Bloomberg_
The dollar saw its first weekly gain since…
https://www.zerohedge.com/markets/stocks-bonds-gold-crypto-slide-us-sovereign-risk-roars-record-high