The FOMC light Taper has been well received by the market. Maybe too well received. Almost manufactured!
I Believe that a policy change, even superficial, must be well managed in order to avoid a negative momentum to take grip. Tomorrow is a big POMO day. It will be interesting to see if this market can hold.
The 10 Years are volatile for now, but certainly not "directional."
The USD is unchanged.
The VIX is down, but not much selling.
When will the market start discounting more taper next year?
Pascal
Reply With Quote