FOMC: Gee, Thanks

Draghi says he’s prepared to do even more (is there anything more than “whatever it takes?”) and the German 10Y continues to slump further into negative territory.

What did it accomplish, you might wonder?  While obviously not changing the prognosis that the ECB will soon be scooping up everything not nailed down, it did manage to break DB above the TL that’s been in place since Jan 2018 (whether it will stay there is another matter.)Meanwhile, the Fed’s task of justifying a rate cut just got a bit more complicated as durable goods strongly beat expectations.Stocks aren’t likely to respond favorably, though there’s now a bit of a technical buffer in the 10-day moving averages.

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