Daily Morning Call
From the Floor: Fed electrifies dollar, pummels yields — #SaxoStrats
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FOMC's 25bps interest rate increase and especially its hawkish dot-plot suggestion of 3 further hikes in 2017 has sent the dollar far higher and pressed sovereign debt way down.
● Global yields jump on hawkish Fed; bunds extend drop in early trade
● Global yields jump on hawkish Fed; bunds extend drop in early trade
● Huge moves in currencies on renewed USD strength
● US Treasury 2-year yield at highest level since 2009
● Dot plots upgraded – 11 out of 17 members see 3 or more hikes in 2017
● More modest pullback in stocks in the wake of the Fed
● Two of Libya's largest oilfields plus biggest export terminal to reopen this week
● Gold and silver hurt by double whammy of stronger dollar and rising real yields