Quotes from Societe Generale Cross Asset Research:
-Global equities are continuing to rally and US Treasury yields are moving higher, with the longer end under-performing as negative-carry flatteners are cut back ahead of year's end. It's a neat trick to have rates markets reacting to a ‘more hawkish than expected' FOMC and the equity market rallying in relief that they were not too hawkish.
-This tells us about market positioning as much as anything else. The FX reaction is to see equity-sensitive EM and highbeta currencies stage relief rallies, while the more rate-sensitive ones are relatively vulnerable. Stay short European currencies vs. the US dollar and most of all, stay long USD/JPY.
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