Uncertainty Surges Over Debt Ceiling; All Assets Sold

Ugly inflation data in the UK was shrugged off by BoE officials (who likely don’t suffer from the cost of living crisis), but overall, today was thin on economic data and fat on economic crisis potential as markets woke up to the reality that the idiots in Washington are going to take this down to the line (or even just maybe cross it).

June 1st T-Bill yields exploded above 7% today,

Uncertainty Surges Over Debt Ceiling; All Assets Sold
Source: Bloomberg

…sending the spread to 5/30 bills to a mind-blowing record high…

Uncertainty Surges Over Debt Ceiling; All Assets Sold
Source: Bloomberg

That’s a 430bps yield premium for 2 days (theoretically) more maturity.

USA CDS spiked back near record highs again…

Uncertainty Surges Over Debt Ceiling; All Assets Sold
Source: Bloomberg

That level of anxiety appeared to finally trigger some cash-hording as everything was sold at the margin…

Stocks were dumped with Small Caps hardest hit (as financials were sold). With an hour to go in the day, ahead of NVDA’s earnings, markets decide to go panic bid

Uncertainty Surges Over Debt Ceiling; All Assets Sold

We note that 0-DTE players tried to spark a rebound twice today (and succeeded in the late one)…

Uncertainty Surges Over Debt Ceiling; All Assets Sold
Source: SpotGamma

The 0-DTE move triggered enough squeeze action in ‘most shorted’ stocks…

Uncertainty Surges Over Debt Ceiling; All Assets Sold
Source: Bloomberg

Gold was puked back to recent lows…

Uncertainty Surges Over Debt Ceiling; All Assets Sold
Source: Bloomberg

Bitcoin was battered again back near $26,000…

Uncertainty Surges Over Debt Ceiling; All Assets Sold
Source: Bloomberg

Bonds were hit too after solid gains overnight. The belly was worst (3Y-5Y +5-6bps) while short- and long-ends were up around 2bps on the day…

Uncertainty Surges Over Debt Ceiling; All Assets Sold
Source: Bloomberg

But, despite plenty of vol, oil managed some gains after Saudi comments yesterday and a huge crude draw today…

Uncertainty Surges Over Debt Ceiling; All Assets Sold

Finally, if you think you had a bad day, consider Bernard Arnault – the world’s richest man still – who lost over $11 billion (and more today) in the last couple of days…

Uncertainty Surges Over Debt Ceiling; All Assets Sold
Source: Bloomberg

As the luxury bubble looks like it just burst…

Uncertainty Surges Over Debt Ceiling; All Assets Sold
Source: Bloomberg

Somebody do something!!!

Contribute by zerohedge.com, Author: Tyler Durden

Author:Com21.com,This article is an original creation by Com21.com. If you wish to repost or share, please include an attribution to the source and provide a link to the original article.Post Link:https://www.com21.com/uncertainty-surges-over-debt-ceiling-all-assets-sold.html

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