US stock market open 16 August 2016
US 10 year yields 1.56% flat
Before the data and Dudley, bonds yields were well down with 10’s trading to a low of 1.51%. The data puts pressure on the Fed’s price mandate and thus pressure on raising rates, while Dudley pumping hikes has eclipsed that. I don’t think that’s a sum that can last but the market obviously has other ideas.