Bitcoin, Bills, Bonds, & Black Gold Slide As Trump ‘Truth’ SPAC Soars

Bitcoin, Bills, Bonds, & Black Gold Slide As Trump ‘Truth’ SPAC Soars

The “TRUTH” will set you free (and make you rich if you bought Trump’s new media SPAC today)…

Making SPACs Great Again?

Overall, US equities saw endless barrages of buying panics with a closing ramp that got The Dow green. Nasdaq outperformed…

The S&P rallied up a new record high just barely…

The Dow stalled at its record high…

Short-dated bonds were monkeyhammered higher in yields today as the long-end remained flat (30Y -1bp, 2Y, 5Y +5bps)…

Source: Bloomberg

5Y Yields rose to their highest since Feb 2020…

Source: Bloomberg

This stalled the yield curve steepening at a significant resistance level…

Source: Bloomberg

The Short-term debt market jumped notably today with Fed rate-hike expectations back at cycle highs (at least 1 hike by Sep 2022 and 2 by Dec 2022)…

Source: Bloomberg

The 5Y Breakeven rate hit 2.915% today – the highest on record – and 10Y breakevens at their highest since 2006…

Source: Bloomberg

Record breakevens followed today’s auction of a fresh TIPS bond which stopped at -1.685%, 1bp through the when-issued price, and the lowest-ever auction rate for a five-year inflation-linked Treasury.

The dollar rallied back to yesterday’s highs (but remains down on the week)…

Source: Bloomberg

Crypto had a tougher day with an early morning flash-crash on Binance sparking some downside pressure in Bitcoin…

Source: Bloomberg

Ethereum significantly outperformed Bitcoin overnight…

Source: Bloomberg

BITO fell back below its opening level…

Oil tumbled today, falling the most since August on news of lockdowns in Eastern Europe and Russia, before bouncing hard off the $80 handle…

As Bloomberg noted, before crude plunged in today’s session, the 14-day Relative Strength Index had been above 70 since early October, signaling the commodity was overbought and primed for a pullback. The run up to $85bbl had been fostered by end-of-day trading amidst low volume and WTI’s November contracts expiring.

Gold ended the day unchanged…

Finally, we note a significant decoupling between Bond volatility (high) and Nasdaq risk (low)…

Source: Bloomberg

And which of these looks more like an inflation hedge (for now)…

Source: Bloomberg

As Peter Thiel reflecting on the record highs, and demand, for crypto: “It surely tells us that we are at a complete bankruptcy moment for the central banks.”

Tyler Durden
Thu, 10/21/2021 – 16:01

Go to Source
Author: Tyler Durden

0 0 votes
Article Rating

Comments

0 Comments
Inline Feedbacks
View all comments