The long suffering bond market took a double hit gut punch today. First slammed by a supply-driven tail-heavy auction of thirty year Treasuries, J Powell delivered the knockout blow in reminding markets that the possibility of more rate hikes is most definitely on the table. So bond prices were pummeled from both ends, the long and the short. The Treasury market as a whole (GOVT) declined by 0.72%, unusually severe for a market weighted towards less volatile shorter term securities.
Commodities remained lackluster with copper off 0.09%, crude back in the mid-seventies and gold still hovering below $2000.
Overbought stocks were unable to stand up to the competition of higher yielding bonds. The cap-weighted averages understated the breadth of the selloff with small caps taking the bigger hit. As a whole though, the world market (VT) was off only 0.64%. It may have felt worse to most traders if only because so many had bought into the media narrative the worst was over because Fed was done.
Such been there done that.