Recipe For A 'Gong Show'
by Tyler Durden Authored by Charlie McElligott via Nomura, Bonds calm overnight, stabilizing from yday afternoon’s stunning VaR-event in Rates / USTs (particularly the belly, yikes), peaking following the 7Y auction bloodbath stress point (tailing by almost 5bps!) as Butterflys then exploded higher in unprecented 1d move fashion ( indicative of RV / leveraged stop-outs), then evidencing itself further in accelerated deleveraging across “reflation” faves (longs in steepeners and TIPS BEs getting slammed / monetized with violence)…all while the MBS bleed continued its ugly recent one...