The FOMC’s SEP dot plots did not leave a lasting affect on USD..

The FOMC’s SEP dot plots did not leave a lasting affect on the Greenback or provide sustained relief for US Treasuries as the global debt sell-off resumed and intensified to the extent that even the short end of the curves retreated sharply. Accordingly, initial post-Fed losses on dovish takeaways were erased and almost reversed in certain cases as the index staged a relatively impressive recovery from 91.300 to 91.899 at best in response to the 10 year yield topping 1.75% and long bond breaching 2.5%. As has been the case of late, data was largely brushed aside even though IJC counts disappointed again in stark contrast to the Philly Fed survey that blitzed consensus in headline terms and was embellished by strong sub-components. However, a collapse in crude prices has taken some of the heat off bonds and tempered reflation fervour amidst rising inflation expectations.