A pretty crazy afternoon in bonds. Yields fell as low as 1.915% after the surprisingly dovish Fed from 2.025% just before the announcement. Yields rebounded to 2.01 after the inflation target was unveiled but we quickly slipped back to 1.985% as the market soon dismissed the target as a hindrance to a Fed hellbent on pushing on a string until there is no string left on which to push.
Despite the somewhat firmer bond yields, stocks and the dollar are doing the reflation buggy. EUR/USD is clearing 1.3100 while the S&P rises 11 pts.
