Dollar Jumps, Stocks Dump As Fed Disappoints POMO-Primed Markets

Dollar Jumps, Stocks Dump As Fed Disappoints POMO-Primed Markets

US equity markets are not happy that The Fed failed to dover on its dovish cut hopes and utterly ignored the ongoing liquidity crisis in short-term money markets.

The dollar is spiking…

Source: Bloomberg

And stocks dropping…

Nasdaq is the biggest underperformer…

30Y Treasury yields are holding at the lows of the day but not extending

Source: Bloomberg

But 2Y yields are spiking on the apparent hawkishness…

Source: Bloomberg

Dramatically flattening the yield curve…

Source: Bloomberg

As the market begins to shift to pricing in less than one more rate-cut by year-end…

Source: Bloomberg

Can Jay talk his way out of this? Or make it worse?

Tyler Durden
Wed, 09/18/2019 – 14:27