Bonds Bloodbath As Jobs Flop, Gold Pops, Dollar Drops Tyler Durden Wed, 12/02/2020 - 16:00 After a weak ISM manufacturing employment print, deteriorating initial claims data, and now ADP's big disappointment, the jobs picture is deteriorating fast in America... Source: Bloomberg But don't let that fool you... there's always hope for 'stimulus'... that lifted stocks from their ugliness intraday. But after yesterday's exuberance, today was quiet-ish - Small Caps led the day as Nasdaq lagged but the overall moves were modest... The Small Cap outperformance relative to mega-tech look familiar again... One thing is for sure... it's not the economy, stupid! Source: Bloomberg Global Central Banks are giving it all they can... Another day, another meltup in Energy stocks... Source: Bloomberg Value continues to hold its gains versus momentum but, despite the recent yield spike, remains notably decoupled from its bond-regime from October... Source: Bloomberg CRM crashed today (and WORK was lower) after they announced their hugely expensive deal... But still, no one wants any protection... Source: SpotGamma But the big headlines of the day were saved for the bloodbathery in bond-land (note the surge in yields hit around 7amET again and stalled at the EU close)... Source: Bloomberg 10Y Yields pushed up to recent resistance (election and vaccine spike highs)... Source: Bloomberg The yield curve soared to its steepest since Nov 2017... Source: Bloomberg The dollar popped and dropped on the day, ending lower once again... Source: Bloomberg Dollar's reversal today came on Yuan strength as headlines suggested Biden would not roll back Trump tariffs... Source: Bloomberg Bitcoin held steady today around the $19K mark... Source: Bloomberg And - for a change - gold paid attention to the dollar weakness and rallied... ...with the precious metal rising back above its 200DMA... Source: Bloomberg WTI ripped higher on the heels of headlines proclaiming "headway" was made among OPEC members (despite a notable surge in product stocks)... Finally, we better hope that Copper is wrong or the world's stock market investors are in for a hell of a surprise when rates soar... Source: Bloomberg Though we have seen this kinda of disconnect before... and it didn't end well... Source: Bloomberg And bear in mind that bonds are now 'cheaper' than stocks once again... Source: Bloomberg