Surveying The Carnage: Bullion Bounces, 30 Year Below 2014 Lows, Stocks Dump
by Tyler Durden
ZeroHedge.com
12/09/2014
While it took a few hours for people (and machines) to realize exactly what China did last night, the fallout in risk markets is now clearly evident when a central bank decides enough-is-enough for speculative wealth creation bubble-followers. As we described last night, China’s tightening has dramatically influenced the carry trade (USDJPY back under 120) and thus global stocks (from Abu Dhabi to Greece), global corporate bonds (all significantly wider) and European peripheral bonds (cracking wider) all face pressure. The beneficiary safe havens so far are precious metals (Gold > $1315) and US Treasuries (30Y at 2014 low yields). For now the mainstream media’s narrative is that this oil-driven (which is fantasy as oil prices are up today) – this is the fallout from the marginal removal of $80bn of leverage collateral from the world’s carry trades…
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