Bloomberg Market Wrap 12/20: Treasuries, Bearish Technicals and Volatility

The video discusses recent market actions, focusing on the strong risk-off sentiment affecting stocks and oil, while Treasurys did not receive the expected haven bid. The flattening yield curve, particularly the 2:10 yield curve, is analyzed, highlighting its significance and potential implications. The sell-off is contextualized within the fourth quarter, noting significant declines in major averages and the presence of bear markets. Increased market volatility and trading volume, especially during triple Witching, are also examined.

What was unusual about the Treasurys' behavior despite the strong risk-off sentiment?

• They sold off more than usual.

• They caught a strong Haven bid.

• They did not catch the Haven bid.

• They remained stable without much change.

What is the significance of the 10 basis point level in the 2:10 yield curve?

• It indicates a strong market rally.

• It is a support level that, if broken, could signal further issues.

• It shows the highest point of the yield curve.

• It marks the end of a bear market.

How did the major averages perform in the first three quarters of the year?

• They fluctuated without a clear trend.

• They remained unchanged.

• They had very solid gains.

• They experienced significant losses.

What trend was observed in the Dow Jones Industrial Average in terms of volatility?

• It showed a consistent upward trend.

• It had minimal fluctuations.

• It experienced swings of more than 500 points multiple times.

• It remained stable throughout the year.

What effect did the quadruple witching have on trading volumes?

• It caused a slight increase in trading volumes.

• It led to a tripling in volume on the S&P 500.

• It had no effect on trading volumes.

• It decreased trading volumes significantly.