No follow through in Treasury yields surge so far today
10-year yields are down 2 bps to 1.555% currently
The dollar may still be working with the technicals and gaining some modest ground in European morning trade but not a lot of that ‘hawkishness’ per se is being reflected in the bond market at the moment.
10-year yields are retracing slightly after yesterday’s surge, falling short of testing 1.60%.
In fact, yields are keeping lower on the day though we may have to wait on US traders to come in to be sure of things.
The Fed certainly did deliver a bit of a hawkish surprise yesterday – in terms of projections – but as long as they keep rate guidance the way it is, there is still reason for yields to be handicapped; as they have been since late March.
Keep an eye on things here as this could also prove to be a headwind for the dollar.