Barrons - Randall Forsyth
- Undercurrents are driving sudden market movements, but not the ones everyone is blathering about.
- Fed comments don’t fit the bill for the blame:
- Short-term treasury yields typically are most sensitive to Fed talk, but they have shown little reaction
- Fed Gov Lael Brainard reinforced her dovishiness, the opposite of what was expected
- So, what is behind the fits in the stock market?
- Unanticipated bounce in yields (little to do with Fed)
- This is likely linked to expectations related to BOJ meeting this week
- Another factor is the dramatic tightening of the U.S. presidential polls