Treasury Action: yields were whipsawed by the Fed hike
Treasury Action: yields were whipsawed by the Fed hike and follow-up reduction of rate hike expectations to 2 from 3 in 2019, which was the proverbial "dovish hike" that had been anticipated. The 2-year yield leapt to clear 2.69% before rotating back down to 2.66% again; the 5-year jumped over 2.71% then dipped to 2.66%; the 10-year vaulted to 2.86% the eased to 2.80%; and the 30-year yield cleared 3.07%, then slumped to 3.02%. That's left yields 0.5-1.0 basis points higher at the front-end and as much as 5.2 bp lower on the bond, reinforcing the "dovish hike" flattener on the curve. The 2s-30s spread is 6.2 bp flatter near +36.3 bp. Stocks pulled back from highs, with NASDAQ now underwater. The dollar index culled some losses back to 96.87 from 96.54 lows earlier.