BitDigest February 18 · Issue #844

As outlined in this week’s Core Strategy note, our “Buy in May” thesis was kept intact following the Fed’s announcement of tapering QT and a dovish FOMC meeting, helping yields begin to roll over. This morning’s non-farm payrolls data has helped fuel further yield deterioration with a large downside surprise of 175k payrolls vs. 238k expected, and the unemployment rate ticking up to 3.9% (3.8% exp.). The US10Y (-1.68%) briefly...

Risk markets were selling off before today's FOMC meeting where it was unanimously voted to keep interest rates steady. The Fed announced it would be reducing the speed of its balance sheet taper from $60 billion per month to $25 billion per month, a larger than expected reduction. Following the announcements and Chair Powell’s comments, yields turned sharply lower with the US10Y falling 9 basis points while equity indices rose....