The Fed refrained from talking down the economy, for a change, and is being rewarded with higher stock prices. This is good news as it comes in the absence of any anticipation (accept by Bill Gross, who owns more bonds than anyone but Bernanke), of further aggressive Fed policy moves in the near-term.
Even Morgan Stanley’s Vince Rinehart admitted his call for QE3 in April could be in trouble, earlier today.
US yields are near 2.0875%, a bit more than 5 bp on the day.
EUR/USD is choppy either side of 1.3100, now at 1.3190.
