Don’t Fight the Fed… no, better to ignore it.
The Fed Minutes were upbeat, considered hawkish enough to leave the US 10 year just shy of 3%, but with stocks in the red. Aha, screamed the taper-tantrum-lovers, a sure sign that a more significant unwind is about to infect us. Wasn’t that what caused the vol-product debacle, after all? With the threat of inflation finally tipping yields over the edge?
But hang on, actual inflation data released last week came in above expectations, and… the USD failed to take off, US yields failed . . .