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S&P lost 30 points: It's the debt, yield

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#1 dTraderB



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Posted 07 February 2018 - 01:22 PM

You can be sure of one thing: Volatility is back!

Good news on that BUDGET deal was trumped by a

bad Treasury Note action. The main reason why markets will go down is not volatility spikes or inverse volatility ETFs blowing up BUT the rising debt to pay for Trump's trillions. Yields are already rising and today's Treasury note auction went real bad, markets tanked immediately. Track the bonds and trade accordingly.


"Wall Street’s fear gauge is blinking red, in part because it’s dawned on investorsthat a massive, debt-financed tax cut isn’t exactly a great prescription for an economy already growing above its potential.

But misguided tax policy is nothing compared to the possibility that Washington will mishandle the upcoming deadline for raising the U.S. debt limit, which the Congressional Budget Office estimates could be breached during the first week of March. Bond traders are taking note of the date, as 4-week T-bills—set to mature the week of the deadline—priced 8 basis points above the same bills maturing a week prior"

US Treasury auctions 10-year Treasury notes at highest yield since ...
CNBC-1 hour ago
U.S. government debt yields ticked upward Wednesday after rebounding sharply in volatile trading during the previous session. The yield on the benchmark 10-year Treasury note was slightly higher at 2.826 percent at 1:05 p.m. ET, while the yield on the 30-year Treasury bond was also slightly higher at 3.103 percent. Bond ...


#2 dTraderB



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Posted 07 February 2018 - 02:07 PM

Stocks erase sharp gains as wild ride on Wall Street continues
  • The afternoon move lower took place shortly after the 10-year Treasury yield rose on the back of a weak auction.
  • Wednesday's moves come after three volatile sessions in which fear of rising inflation sent interest rates higher, pressuring equities.
  • Traders also blamed computerized trading and sharp moves in obscure volatility funds that use leverage for the market's recent swings.