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Taper-On Slams Fed Kool Aid Trades

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While US equities remain immune, bonds, bullion, and the greenback are moving in a very "Taper-On" mode. Gold and Silver have been slammed hard this morning for the fourth time in the last four regional openings. 10Y interest rates on US Treasury yields are spiking to 2.98% (and 5Y is up 20bps this week alone); and the USD is well bid, up nearly 0.7% today alone as EUR and CHF crumble. It seems the great rotation from Fed-Kool-Aid trades is beginning... can stocks really withstand such liquidity conditions?

Gold and Silver have been slammed as each region opens...

 

and the US bond market (and implicitly every bond in the world priced from it) is dumping...

 

and the USD is bid once again...

 

Charts: Bloomberg


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