Thursday, 31 October 2013

Buy the Rumours, Sell the Facts

The Fed kept policy unchanged and left its statement almost intact. This triggered a buy-the-rumour, sell-the-fact reaction and took the shine off the recent bond rally. The US 10-yr yield bounced off key support (2.47%) whereas the German one trades below 1.73%. Markets anticipate a soft ECB after lower inflation, weak Bank Lending Survey and hints on continued liquidity provision.

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