As we settle in a day post the 25bp rate cut from the Federal Reserve, we find market rates higher and the curve steeper. Certainly Thursday's jobless claims and Philadelphia Fed data (both firm for the economy) pushed in the direction of higher rates, but the tone from the US close in the hours after the Fed decision on Wednesday was also pushing in that direction. It was Asian and European trading that took the US Treasury yield back down from a possible attack on 4.1%. But that attack subsequently happened as the US trading day took control (especially post the data). So far, the 4% level has broadly held for the ... (full story)