The selling pressure stops
The market wanted a warm hug from Powell today but it got a cold handshake. That's led to some kicking and screaming but at the end of the day, the economy is in charge, not Powell.
Congress is less than 10 days away from passing a $1.9 trillion stimulus bill that will give most Americas a $1400 handout and fund all kinds of spending at various levels.
Just this week, Biden accelerated the vaccine rollout to the end of May. Boom times are coming, at least for a few months and Powell is promising to keep printing and keep rates at zero for a long time.
Episodes of volatility come and go but this isn't a game changer. BTD will work but the timing isn't always easy.
One good sign is that the bond market has been orderly. US 10s are up 6 bps to 1.54% and didn't seriously challenge 1.60%. US 30s are only up 2.6 bps.
