Hawkish Fed Sparks Dollar Bid, Stocks Slid, Yield Curve Craters

Equity markets lurched lower but are coming back now after The Fed signaled a more hawkish expectation of two more rate-hikes in 2018. The dollar spiked and while Treasury yields also jumped, the yield curve collapsed to new cycle lows

All major equity indices are red post-FOMC…

The dollar jumped to the day’s highs..

 

Yield are up across the curve – 10Y stil below 3.00%…

 

And while rates are higher the yield curve is getting crushed with 2s30s at its flattest since Oct 2007…

And at the shorter-end 5s7s  are back into single-digits and 7s10s is only +3bps (almost inverted).

 

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