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Asia Morning Bites
US Treasury markets opted to interpret yesterday’s data and FOMC meeting dovishly, though, in truth, this was a day of mixed messages. 2Y UST yields dropped 8.2 basis points and 10Y yields fell 8.8bp to 4.316% but had been down more before the FOMC meeting. Fed funds futures now have about one and three-quarters cuts priced in, which is more or less in line with the new dot plot median. The drop in US yields has helped to lift EURUSD back above 1.08 and the AUD has also risen strongly, getting back to 0.6666. It is a positive story across the rest of the G-10, though the JPY has given back much of its earlier gains ... (full story)