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The Fed surprised markets by acknowledging disinflation and softening its stance, pricing in earlier easing for 2024. US two-year Treasury yields fell 30 basis points and the yield curve bull-steepened.
Lower US yields and a softer dollar outlook tend to support dollar-priced commodities and can ease financing costs across the feed chain.
think.ing.comChris Turner, Francesco Pesole, Frantisek TaborskyDec 14, 2023After 1,637 past bearish macro events, DXY moved a median -0.2% over 5 sessions (39% higher; middle half -0.6% to +0.3%), and -0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
The Fed's disinflation acknowledgment pulled the US 2-year yield down 30 bp, narrowing rate differentials and weakening the dollar.
