2 Year Treasury Yield Flash Crashes

If you thought the frenzied, panicked selloff into abysmal liquidity would end when the stock market plunged into the close, tumbling 2.71% and officially ending the longest bear market in history when the S&P dropped over 20% from its Sept 20 all time highs… you were wrong, because while stocks closed at 1pm, bonds are still open (until 2pm), and just after 1:24pm, the 2Y Treasury yield flash crashed (as prices Flash Smashed).

What caused this latest algo-driven market freakout? It certainly wasn’t today’s poor 2Y auction which saw the lowest bid-to-cover since December 2008 and a nearly 2bps tail.

The most likely culprit is what we discussed just yesterday when we noted that the short squeeze observed by Jeff Gundlach has yet to materialize, and not just at the long end, where net specs have never been shorter…

… but also the short end, where 2Y treasury net specs have rarely been shorter.

With stock markets in freefall, record low liquidity across all asset classes, and yields sliding all day, it was only a question of “max pain” before yet another big short was stopped out and threw in the towel, capitulating and covering their position at any price which appears to be precisely what happened with the 2Y Treasury.

Expect many more fireworks as more TSY shorts across the curve follow suit.

2 Year Treasury Yield Flash Crashes <body> <h1> Array ( [0] => 1 year treasury yield flash crashes [1] => q year treasury yield flash crashes [2] => w year treasury yield flash crashes [3] => 3 year treasury yield flash crashes [4] => 2 tear treasury yield flash crashes [5] => 2 gear treasury yield flash crashes [6] => 2 hear treasury yield flash crashes [7] => 2 uear treasury yield flash crashes [8] => 2 7ear treasury yield flash crashes [9] => 2 6ear treasury yield flash crashes [10] => 2 ywar treasury yield flash crashes [11] => 2 ysar treasury yield flash crashes [12] => 2 ydar treasury yield flash crashes [13] => 2 yrar treasury yield flash crashes [14] => 2 y4ar treasury yield flash crashes [15] => 2 y3ar treasury yield flash crashes [16] => 2 yezr treasury yield flash crashes [17] => 2 yesr treasury yield flash crashes [18] => 2 yewr treasury yield flash crashes [19] => 2 yeqr treasury yield flash crashes [20] => 2 yeae treasury yield flash crashes [21] => 2 yead treasury yield flash crashes [22] => 2 yeaf treasury yield flash crashes [23] => 2 yeat treasury yield flash crashes [24] => 2 yea5 treasury yield flash crashes [25] => 2 yea4 treasury yield flash crashes [26] => 2 year rreasury yield flash crashes [27] => 2 year freasury yield flash crashes [28] => 2 year greasury yield flash crashes [29] => 2 year yreasury yield flash crashes [30] => 2 year 6reasury yield flash crashes [31] => 2 year 5reasury yield flash crashes [32] => 2 year teeasury yield flash crashes [33] => 2 year tdeasury yield flash crashes [34] => 2 year tfeasury yield flash crashes [35] => 2 year tteasury yield flash crashes [36] => 2 year t5easury yield flash crashes [37] => 2 year t4easury yield flash crashes [38] => 2 year trwasury yield flash crashes [39] => 2 year trsasury yield flash crashes [40] => 2 year trdasury yield flash crashes [41] => 2 year trrasury yield flash crashes [42] => 2 year tr4asury yield flash crashes [43] => 2 year tr3asury yield flash crashes [44] => 2 year trezsury yield flash crashes [45] => 2 year tressury yield flash crashes [46] => 2 year trewsury yield flash crashes [47] => 2 year treqsury yield flash crashes [48] => 2 year treaaury yield flash crashes [49] => 2 year treazury yield flash crashes [50] => 2 year treaxury yield flash crashes [51] => 2 year treadury yield flash crashes [52] => 2 year treaeury yield flash crashes [53] => 2 year treawury yield flash crashes [54] => 2 year treasyry yield flash crashes [55] => 2 year treashry yield flash crashes [56] => 2 year treasjry yield flash crashes [57] => 2 year treasiry yield flash crashes [58] => 2 year treas8ry yield flash crashes [59] => 2 year treas7ry yield flash crashes [60] => 2 year treasuey yield flash crashes [61] => 2 year treasudy yield flash crashes [62] => 2 year treasufy yield flash crashes [63] => 2 year treasuty yield flash crashes [64] => 2 year treasu5y yield flash crashes [65] => 2 year treasu4y yield flash crashes [66] => 2 year treasurt yield flash crashes [67] => 2 year treasurg yield flash crashes [68] => 2 year treasurh yield flash crashes [69] => 2 year treasuru yield flash crashes [70] => 2 year treasur7 yield flash crashes [71] => 2 year treasur6 yield flash crashes [72] => 2 year treasury tield flash crashes [73] => 2 year treasury gield flash crashes [74] => 2 year treasury hield flash crashes [75] => 2 year treasury uield flash crashes [76] => 2 year treasury 7ield flash crashes [77] => 2 year treasury 6ield flash crashes [78] => 2 year treasury yueld flash crashes [79] => 2 year treasury yjeld flash crashes [80] => 2 year treasury ykeld flash crashes [81] => 2 year treasury yoeld flash crashes [82] => 2 year treasury y9eld flash crashes [83] => 2 year treasury y8eld flash crashes [84] => 2 year treasury yiwld flash crashes [85] => 2 year treasury yisld flash crashes [86] => 2 year treasury yidld flash crashes [87] => 2 year treasury yirld flash crashes [88] => 2 year treasury yi4ld flash crashes [89] => 2 year treasury yi3ld flash crashes [90] => 2 year treasury yiekd flash crashes [91] => 2 year treasury yiepd flash crashes [92] => 2 year treasury yieod flash crashes [93] => 2 year treasury yiels flash crashes [94] => 2 year treasury yielx flash crashes [95] => 2 year treasury yielc flash crashes [96] => 2 year treasury yielf flash crashes [97] => 2 year treasury yielr flash crashes [98] => 2 year treasury yiele flash crashes [99] => 2 year treasury yield dlash crashes [100] => 2 year treasury yield clash crashes [101] => 2 year treasury yield vlash crashes [102] => 2 year treasury yield glash crashes [103] => 2 year treasury yield tlash crashes [104] => 2 year treasury yield rlash crashes [105] => 2 year treasury yield fkash crashes [106] => 2 year treasury yield fpash crashes [107] => 2 year treasury yield foash crashes [108] => 2 year treasury yield flzsh crashes [109] => 2 year treasury yield flssh crashes [110] => 2 year treasury yield flwsh crashes [111] => 2 year treasury yield flqsh crashes [112] => 2 year treasury yield flaah crashes [113] => 2 year treasury yield flazh crashes [114] => 2 year treasury yield flaxh crashes [115] => 2 year treasury yield fladh crashes [116] => 2 year treasury yield flaeh crashes [117] => 2 year treasury yield flawh crashes [118] => 2 year treasury yield flasg crashes [119] => 2 year treasury yield flasb crashes [120] => 2 year treasury yield flasn crashes [121] => 2 year treasury yield flasj crashes [122] => 2 year treasury yield flasu crashes [123] => 2 year treasury yield flasy crashes [124] => 2 year treasury yield flash xrashes [125] => 2 year treasury yield flash vrashes [126] => 2 year treasury yield flash frashes [127] => 2 year treasury yield flash drashes [128] => 2 year treasury yield flash ceashes [129] => 2 year treasury yield flash cdashes [130] => 2 year treasury yield flash cfashes [131] => 2 year treasury yield flash ctashes [132] => 2 year treasury yield flash c5ashes [133] => 2 year treasury yield flash c4ashes [134] => 2 year treasury yield flash crzshes [135] => 2 year treasury yield flash crsshes [136] => 2 year treasury yield flash crwshes [137] => 2 year treasury yield flash crqshes [138] => 2 year treasury yield flash craahes [139] => 2 year treasury yield flash crazhes [140] => 2 year treasury yield flash craxhes [141] => 2 year treasury yield flash cradhes [142] => 2 year treasury yield flash craehes [143] => 2 year treasury yield flash crawhes [144] => 2 year treasury yield flash crasges [145] => 2 year treasury yield flash crasbes [146] => 2 year treasury yield flash crasnes [147] => 2 year treasury yield flash crasjes [148] => 2 year treasury yield flash crasues [149] => 2 year treasury yield flash crasyes [150] => 2 year treasury yield flash crashws [151] => 2 year treasury yield flash crashss [152] => 2 year treasury yield flash crashds [153] => 2 year treasury yield flash crashrs [154] => 2 year treasury yield flash crash4s [155] => 2 year treasury yield flash crash3s [156] => 2 year treasury yield flash crashea [157] => 2 year treasury yield flash crashez [158] => 2 year treasury yield flash crashex [159] => 2 year treasury yield flash crashed [160] => 2 year treasury yield flash crashee [161] => 2 year treasury yield flash crashew ) </h1> </body>