AUTOREFRESH 
Dovish Fed looking pretty smart at the moment
By Jamie Coleman || January 8, 2010 at 13:51 GMT
|| 5 comments || Add comment
Slack in the labor market has been the Fed’s primary focus and its reason for not fearing an inflation out-break any time in the foreseeable future. Today’s data certainly gives their stance some added credibility.
US yields continue to ease as the market sees the Fed maintaining rates at unusually low levels for a considerable period, just like they told us at the last FOMC.
2-year nots at trading at a 0.95% yield and 10s have eased more modestly, to 3.84%.
USD/JPY should struggle as long as yields continue to ease. It is finding bids now in the 92.30/40 area. 0.9205 is key support–large stops lie below.
why did the GBPJPY Long stop due to the neg. NFP?
Not sure, but the uptrend is still in tact and there’s still decent momentum. “Hopefully’, it remains that way for the next few weeks. Months, preferably.
Probably got some help from the USDJPY pair. Big Drop there. Although as Michael says the uptrend is still there as is evident by the comeback in the last 30 minutes.
Pimco comments: pretty much bashing mkt expectations and defending their views about a slow, jobless recovery if any..
Ah, the “interest rate sensitive” usd/yen. That would be it.