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StL Fed Bullard: Weaker Stocks, Higher Yld and Inverted Curves

It's the unscheduled Fed speakers you have to be wary of! Yields spiked after recent StL Fed Pres Bullard comments favoring 50bp hike in March and intermeeting moves as a policy tool.
  • Last seen around mid May last year, 30YY surged to 2.3436% high -- just ahead the 30Y Bond auction where the WI was steady around 2.302% prior to the cut-off.
  • Of note, 2YY currently at 1.5827% well above where 10YY started the year (1.5360%).
  • SPX eminis HAD been trading back over the 50-day EMA of 4564.03, falling back near early session lows: -66.0 at 4512.0 (-1.44%).
  • Yield curves bear flattening on prospect of over 150bp hikes by year end:
    • 3M10Y -4.548, 160.688 (L: 160.259 / H: 169.004)
    • 2Y10Y -10.171, 47.141 (L: 44.14 / H: 59.526)
    • 2Y30Y -11.526, 76.126 (L: 72.28 / H: 90.071)
    • 5Y30Y -4.882, 37.596 (L: 35.314 / H: 44.078)
    • 7s10s extended inversion to -.780 low back to +.403 (-1.677).

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