The US 10-year Treasury note yield flash crashes on Thursday, 6/7/18, at 1:30 PM EST.
Treasury yields are; 2-year 2.52%, 5-year 2.81%, 10-year
2.96%, 30-year 3.10%. The 2-10 spread is 43.8 bips. Yields on the long end are
slipping lower.
SPX 2774. The Dow is up 135 points at 25281. The Nasdaq
Composite tanks 40 points, -0.5%, to 7649. The Russell 2000 slips 6 points to
1669. Markets are mixed. VIX 12.15.
Brazil steps in with $2 billion to support the real. The
move is increasing the worry around emerging market currencies that are
crumbling against a stronger US dollar. The recent trucker strikes have
seriously hurt Brazil’s economy. Brazil’s Bovespa loses -5%. EWZ tanks -5.2%
and is briefly down -9%.
At 1:27 PM, the 10-year yield is at 2.94%. The US 10-year
yield flash crashes to 2.88%. At 1:33 PM, the 10-year is at 2.92% then falls
off a cliff printing 2.88% at 1:35 PM. Global yields move generally lower.
Investors are flocking to the safe havens (buying notes and bonds sending
yields lower). Brazil creates global contagion fear.
In about 15 minutes, the US 10-year yield is recovering to
the 2.92% to 2.94% range near where the flash crash started now chopping
sideways. The 10-year yield flash crashes 6 basis points in 2 minutes (2.94% to
2.88%) and at the low yield is down 12 bips from the 3% high overnight.
SPX 2766.66. INDU 25242. COMPQ 7621. RUT 1666.66. VIX 12.27.
WTIC oil is up +1.7% to 65.84. Brent oil is up +2.2% to
77.03. Natural gas gains +1.1% to 2.93. Gold 1298. Silver 16.84. Copper 3.2805.
Sugar -3.8%.
Euro 1.1811. Euro/yen 129.59. Dollar/yen 109.72. Pound
1.3418. Euro/pound 0.8804. Indian rupee 67.1312. Mexican peso 20.5171. Canadian
dollar 1.2983. Dollar/yuan 6.3921.
Treasury yields are; 2-year 2.50%,
5-year 2.79%, 10-year 2.94%, 30-year 3.08%. The 2-10 spread is 43.4 bips.
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