Inside Markets

The pullback in bond yields has been the main driver behind the week-long relief rally in equities.

Yesterday’s equity rally carries over as 10-year yields sink below 4.70% after the Treasury announced plans to slow the pace of increases in long-term bond sales in coming quarters.

The pullback in bond yields keeps a tenuous relief rally in the conversation, but the move falls short of signaling a short-term trend reversal.  

Today’s dip in longer-dated bond yields follows a relatively benign BOJ policy outcome.

The lack of a broadening Middle East conflict and oversold conditions drive today’s bounce in equity markets.

Earnings are in focus after an unusually high number of overnight disappointments. 

Elevated Treasury supply and waning demand remain primary drivers of the higher bond yield environment.

This morning’s reprieve in bond yields is helping the CBOE Volatility Index (VIX) come off highs approaching our ‘elevated’ threshold of 22.

The backup in bond yields became dislocated from their fundamental drivers about three weeks ago.

Takeaways from Powell’s anticipated address to the Economics Club of NY seem a bit more dovish than the consensus message from other Fed officials over the past two weeks.