So we got a hawkish Yellen on Capitol Hill.
Or did we?
The market certainly seemed to think so. Rates and the dollar spiked hard when the Fed Chair's prepared comments hit the wires on Tuesday morning.
Note the subsequent dollar dip into week end.
Many market participants were confused. "A good meeting between Presidents Trump and Abe, strong US data, including higher than expected inflation, and a somewhat hawkish tone by Yellen in her Congress testimony supported the DXY early in the week," BofAML wrote, adding that "then, the index went back where it started, for no clear reason."
Bloomberg's Richard Breslow noted this as well, writing the following on Friday:
Chair Janet Yellen was taken as hawkish. CPI was a clear beat. If you bought dollars on that you’re down money. If you hit the bid on some 2-year Treasuries as the headlines flashed, ditto. The 10-year U.S. Treasury yield printed the week’s low yield Friday, having approached year-highs earlier. Not what you would have been positioned for if you’d received the week’s news in advance.
Maybe the answer lies in jitters over Trump's ability to deliver on his promised "phenomenal" tax plan. Or perhaps there's sp
Please support this website by adding us to your whitelist in your ad blocker. Ads are what helps us bring you premium content! Thank you!