- It's clear that the Fed is not for moving away from a super-easy policy setting. This leaves the back end of the curve still quite unprotected from any unexpected inflation.
- The bond market is listening; US yields rose into the FOMC and came out re-testing lower.
- We see this as a temporary stall within a medium-term rise in market rates. We also note ongoing strong demand for fixed income - remarkable in a bear market for bonds.
- Ahead of tomorrow's preliminary eurozone inflation data, we will get preliminary inflation readings from Germany and Spain today, which should point the way for the wider bloc.
For further details see:
Rates Spark: Closer To Being Fed Up