As stock algos push indices ever higher in their inevitable push for all-time-highs, investors are flooding into developed market bonds sending German 10Y Bunds to a new record low 4.8bps (following Aussie record lows overnight) and dragging US Treasury yields drastically lower.
Dow surges to 18,000...
As Bund yields collapse to record lows..
And Treasuries follow...
Charts: bloomberg
Copper futures are tumbling by the most in 2 months (testing back towards 4 month lows) after the biggest two-day increase in copper stockpiles monitored by LME since 2004.
Dr.Copper is sick...
As LME Copper inventories explode higher...
As Bloomberg details,
Copper held in Asian warehouses tracked by the London Metal Exchange jumped 50 percent in the past two days, the most in seven years.
VIX is surging off an ovenight 12 handle, USDJPY and bond yields are tumbling to the lows of the day and US equity futures, while up, have given back the overnight exuberance gains... something's different today.
Gold and Oil are vying for the post-payrolls lead as bonds are still trumpingh stocks...
FX and bonds ain't buying it...
And VIX is not being monkeyhammered lower...
Stil lit's early yet and all-time-highs are but a few points away.
With just one day left before the ECB officially begins buying corporate bonds, the financial world is awestruck by what Mario Draghi has achieved by unleashing an unprecedented demand for ECB-backstopped corporate credit (something we previewed back in March in "BofA Explains Why The ECB Will Be Forced To Buy Junk Bonds"). As Bloomberg writes overnight, the average yield on investment-grade company notes in euros tumbled to 1.002% on Monday, according to Bank of America Merrill Lynch index data.
Gold prices surged nearly 3% after the very poor jobs number on Friday, have maintained those gains and appear to be consolidating as concerns about the U.S. economy and BREXIT deepen.
Gold Prices in USD – 1 Week (GoldCore)
Gold was marginally higher yesterday and 2.7% higher last week breaking a run of recent weekly losses and a 5% loss in May.