The Fed hiked... and the Treasury market threw up all over it, flattening the curve over 10bps in the last 16 hours (to 9 month lows). The reaction screams "policy error" as rate cut odds for January remain above rate-hike odds. Financials - who will benefit greatly from this rate hike if all the talking heads are to be believed - appears not to have got the flattening curve joke yet.
Not exactly an overwhelming vote of confidence!!!
Smashing 2s30s back below 200bps to 9-month lows...
Financials remain bid (just like they were in August...)
It's different this time.
Charts: Bloomberg