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12 Jul 2013
Flash: Bernanke leads market - BBH
FXstreet.com (London) - Brown Brothers Harriman analysts believe that Bernanke's comments, within the context of market positioning and expectations, drove the price action this week.
They begin by noting that the dollar fell and helped extend the US stock market gains, which entering today is up six consecutive sessions and is poised to post its biggest weekly gain of the year. they write, “Bernanke's comments helped ease US yields, with the yield on the 10-year note slipping to new lows for the week now, which are about 15 bp below the level seen before Bernanke. The implied yield on the December 2014 Eurodollar futures has also fallen about 15 bp this week.”
They begin by noting that the dollar fell and helped extend the US stock market gains, which entering today is up six consecutive sessions and is poised to post its biggest weekly gain of the year. they write, “Bernanke's comments helped ease US yields, with the yield on the 10-year note slipping to new lows for the week now, which are about 15 bp below the level seen before Bernanke. The implied yield on the December 2014 Eurodollar futures has also fallen about 15 bp this week.”