Please enable javascript in your browser to view this site!

Yields down under 2.12 ahead of FOMC

30 min ahead of today's FOMC, we still see stocks paying little to no real attention to the move in Bonds, nor US Dollar.. with yields having broken down under 2.12 while DXY has pulled back to test the key 96 level-   Financials underperforming as might be expected with yields down.. and Energy down another 2% today as Crude breaks down to near make-or-break intraday levels, but will close at lowest level of the year at current levels.  Healthcare and Tech helping market to absorb Financials loss.. and Defensives all outperforming.  If FOMC talks a hawkish game to support their rate hike and pace of hikes going forward, this could help financials bounce and help yields also turn higher which would be key-  At present, little to no real insight as to S&P move but nearly all the focus on the Bond market and Yellen's comments.  GIven that eco data disappointed today badly, the FED might see the need to address some of this soft data, but also talk a hard line to support why they are indeed hiking rates, which from a data standpoint.. looks more like an OPEN WINDOW.. and much more Dow dependent than data dependent, which has dropped off measurably in the last 3 months since the March hike