S&P Loses 2,500, Gold Tests $1300 As Fed Flattens Yield Curve

As Yellen's press conference began, Gold and stocks legged lower, taking out $1300 and 2500 respectively..

 

As we detailed earlier, the dollar spiked higher and the yield curve spiked lower following The Fed's hawkish statement. 2Y yields hit their highest since Dec 2008...

 

As December rate hike odds jumped to 63%.. so still not completely buying The Fed's plan...

 

The dollar spiked...

 

But the yield curve cracked notably flatter... as the long-end was unimpressed.

 

This is not what The Fed, or the banks, were hoping for. How long before bank stocks wake up?

This is the biggest flattening in 5s30s since Dec 2016.

For now, gold is down, the dollar is up...