Digesting The FOMC Minutes

By Stephen Innes3 days ago

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Markets

The S&P 500 waffled in quiet session Wednesday but ultimately managed to move higher and notch another record close.

US Small Caps underperformed while(mega cap Tech) led the way higher. FOMC March minutes offered no clear direction on the timing of interest-rate moves.

Elsewhere, Treasury Secretary Janet Yellen gave a detailed sales pitch for the Biden administrations proposed new corporate tax code while the president made his case for infrastructure spending.

After two days of moving higher, S&P implieds took a breather. The curve closed broadly lower down 75-15bp out through June 2022, with shorter dates underperforming the most.

SPX 1m skew was flat on the day. But the VIX resumed its downward move, closing at 17.1. The whole VIX curve is now trading below 25 for the first time since February 2020 which should encourage global risk-taking/

A second minute on the minutes

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