Tyler Durden | TalkMarkets | Page 454
Writer at ZeroHedge
Contributor's Links: ZeroHedge
Tyler Durden (pseudonym) is thelead writer at ZeroHedge. Tyler represents the idea that a return to truly efficient markets is a possibility and a necessity. After having experienced the inner workings of capitalism at various asset managers and advisors, Tyler believes that the current model is ...more

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Treasury Yields Tumble After Art Cashin Warns "All Hell Will Break Loose" If 10Y Hits 3%
Since Cashin's warning, it seems more than a few investors have taken some short bond chips off the table as Treasury yields have tumbled.
This Is What Jeff Gundlach Thinks Is "Fair Value" On The 10 Year
Gundlach estimated the fair value on 10Y yields in the USA to current nominal GDP. The gap is notable as current nominal GDP prints are above 4% with 10y yields below 3%.
Libor-OIS Contagion: As Spread Blows Out, It Starts To "Infect" Other Markets
Earlier this week we noted that as trader attentions have been focused on more conventional indicators of market risk, the USD Libor-OIS spread - historical a sign of credit concerns - has been blowing up. Earlier today the spread widened again.
How An Anbang Default Could Rock The Market: Wall Street Explains
When looking at the most unstable of China's mega conglomerates Anbang Insurance, we said that "Anbang's troubles could soon become systemic." Half a year later, that's exactly what happened.
BofA Revises 10Y Forecast To 3.25%, Expects A "Bumpy Transition" Higher
Exactly one week after Goldman became the first major bank to raise its 10Y yield target from 3.00% to 3.25%, this morning BofA was delighted to follow in Goldman's footsteps and also revised its 10Y year-end forecast to 3.25%.
Traders Puzzled By Pound Flash Crash
GBPUSD is hitting a fresh day low at 1.3905, versus day high at 1.3995.
Why The Market's Most Important Correlation Has Flipped
The higher rate, the lower the S&P, or as BofA explains, "every 50bp increase in the normalized real risk-free rate reduces the fair value of the S&P 500 by roughly 6-8%".
Dollar Dumps As Nasdaq Suffers Longest Losing Streak In 15 Months
Bear markets open on the highs and close on the lows. This is particularly the case when derivative products need to rebalance in a relatively narrow window near the end of the day.
Historic Week Ends With Medicore, Tailing 7Y Auction At Highest Yield Since March 2011
And so we reach the last auction in what has been a record supply of over a quarter trillion in bills and coupon notes this week, with today's sale of $29 billion in 7 Year paper.
WTI/RBOB Jump After DOE Confirms Surprise Crude Draw, Production Slows
WTI/RBOB rallied overnight, but faded into the DOE data. However, as DOE confirmed API's reported surprise crude draw (-1.616mm) and production slipped very modestly, prices jumped.
S&P Futures Rebound As Dollar Rally Ends, Yields Drop
Global stocks took another leg down during the early part of Thursday's session, sliding to one-week lows in the wake of Wednesday's unexpectedly market-moving FOMC minutes.
European Stocks Suffer 'Death Cross' As Rebound Rolls Over
Following dismal PMIs across Europe yesterday, the region's equity market rebound is rolling over today and has triggered the dreaded 'death cross', last seen in September 2015 before stocks legged notably lower.
"Goldilocks" Is Dead: Stocks, Bonds, Bitcoin Dump As Hawkish Fed Spoils Recovery Party
An exciting higher open and ramp post-Fed Minutes evaporated as stocks dropped back into the red from Friday.
Libor-OIS Blowing Out On Rising Repatriation Concerns, Collapsing Front-End Funding
While trader attentions have been focused on more conventional risk indicators like equities, yields and bonds spreads in the aftermath of the February VIX eruption, a less followed indicator has been blowing up.
Fed's Goldilocks Minutes: Hawkish On Growth And Inflation But Not Enough For 4 Hikes
Market-implied expectations for the number of rate-hikes in 2018 surge to new cycle highs (2.82 hikes) ahead of the minutes (and the dollar had crept higher with them).
Stocks, Bonds, Dollar Swing Dovish After Hawkish Fed Minutes
Stocks and bonds are bid and the dollar is dumping as the market's dovish reaction signals the Fed's Minutes were not as hawkish as traders expected.
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