The manager turned first to an overview of market developments during the intermeeting period. The conflict in the Middle East had continued to be a key factor driving asset price movements. Equity prices had more than reversed their earlier declines, while 2-year and 10-year Treasury yields rose a bit further over the intermeeting period, as did near-term inflation compensation. In foreign exchange markets, the U.S. dollar retraced some of its previous appreciation. The manager observed that the crude oil futures curve was higher than the curve prevailing at the time of the March FOMC meeting. The curve remained ... (full story)