Bonds had a bad day on Thursday with 10 year yield climbing to 2.78% (+7bps) and bitcoin ... a terrible one, shedding 14% (falling to its lowest level this year) after India said it does not consider bitcoin (or cryptocurrencies more generically) as legal tender. Stocks tried to hold a straight face, closing mostly unchanged again after a volatile session. Cross asset correlation is firmly on the ris e which exacerbates the deleveraging process. Some are calling 3% on 10year US treasuries the threshold of pain for stocks. Rather than a line in the sand, rising cross asset correlation is the real warning that investors are taking note of. Despite rising yields (usually supportive), the dollar index , dropped -0.5%, not helped by Goldman jumping on the bearish wagon calling for 1.30 on EURUSD for year end. The job report is due out today. Overnight, the s&p dropped 6points.
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