The Federal Reserve cut interest rates by 50 bps yesterday, its first emergency cut since 2008. But it had the exact opposite effect intended as equities sold off through the US session. Bond yields plunged further, with US 10-yr yields dropping under 1 per cent for the first time and hitting as low as 0.9060 per cent overnight. Bonds are driving equities and the emergency cut only seemed to make things worse.
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