If you told me that US stocks were down another 3% today, I might have expected 10-year yields to be down more than 2.4%.
You can take that as a sign that bonds aren't as frightened as stocks. Perhaps that's the case, or perhaps it's inflation.
I also tend to think there's some reflexivity here. Those who might have been expecting four or more Fed hikes this year might be having second thoughts. The Fed has a long history of bowing to whatever the market wants. On Friday there were already guys on CNBC talking about the wealth effect. At the very least, it's tough to imagine Powell getting more hawkish on Wednesday.
Meanwhile, the S&P 500 continues to carve out new lows, down 150 points or 3.4%. This has turned into tbe kind of thing that makes its way from Wall Street to the front pages. The Nasdaq is down 4.1%.
