Either market participants were positioned for a more downbeat FOMC or were determined to use the occasion to push yields and the USD higher. The USD surged in two stages: after the release of the FOMC statement and during Bernanke’s Q&A. Yields on US 10 year Treasuries finished trade 15bps higher at 2.35%. Even the normally sedate US 2 year yield increased by 4bps to 0.31%.
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Commonwealth Bank