The market is still in a sell everything mood
US futures are down by ~4% on the session while Asian equities are seeing heavy losses across the board as we approach the closing stages of Asia Pacific trading.
The Nikkei is down by 1.5% - despite BOJ hoarding ETFs - while the Hang Seng is down by 3.9% currently. Australia's ASX 200 has also fallen by over 3% on the day.
Gold is also down by 1% while Treasuries continue to be sold off, with yields surging higher again once again today - as has been the case this week. 10-year yields are now up by nearly 6 bps close to 1.25% in another sign of financial dislocation.
For the bond market, there are no easy answers. Is this due to margin liquidation? Is this the market questioning all the deficit that is about to be racked up? Is this due to credit reshuffling? And this is all coming despite the fact that we're seeing QE.
In the currencies space, the aussie and kiwi continue to be battered as they fall by more than 3% against the dollar to 0.55XX levels respectively.
