It’s risk on in the bond and stock markets.
The S&P 500 has crested 1439 to the highest since 2008.
The real story is in bonds. The 10-year Treasury note is yielding 1.75%, the highest since Aug 22, which is the day the dovish FOMC minutes were released.
The forex market hasn’t jumped on board, which is somewhat puzzling. USD/JPY has matched the Asia high at 77.96 with buy stops likely above 78.00. A break there will likely spill over to the rest of the market.
It’s often the case before a major event like the FOMC that you see some clunky asset allocation trades.
