With bonds and bullion remainig bid post payrolls, post May Minutes, post April FOMC, and post December's Fed rate-hike, it is clear that the market is losing faith in The Fed... and we suspect The Fed is losing faith in itself as it takes the ax (once again) to its growth and rate forecasts (the dot-plot).
- *FED SAYS IT EXPECTS LABOR MARKET INDICATORS `WILL STRENGTHEN'
- *FED: MEDIAN FED FUNDS EST. 1.6% END-2017 VS 1.9% IN MARCH
- *FED SAYS PACE OF LABOR MARKET IMPROVEMENT HAS SLOWED
July rate-hike odds are at 18% (and Sept at 19%). Pre-Fed: S&P Futs 2082, 10Y 1.61%, EUR 1.1240, Gold $1285