FAST FIVE: Treasuries Flash An "Ominous Sign" As Stocks Surge
Meanwhile, manufacturing production contracted for the second straight month despite forecasts of slight expansion, declining -0.4% MoM.
This brings capacity utilization back to its lowest level since last July, having declined three straight months (and four of the last five).
Finally, and the latest divergence observed today between risk free assets and safe havens is that today's 10-year yields tumbled to the lowest levels since the beginning of the year, with the post-CPI intraday bottom now breached.
In short: just as another BMO strategist, the bank's chartiest Russ Visch noted on Wednesday, “the bond market certainly hasn't been buying into this week's strength in equity markets either.
Bonds or equities?” The answer will determine what happens after today's quad witch is over.