Bill Dudley says there is no shortage of demand for US debt both domestically and aboard. (Don’t forget, the US savings rate is rising and investors are abandoning stocks for bonds).
He is a bit more concerned about an exit strategy from the Fed’s extraordinary market interventions than some of his colleagues and says a few extra tools to that end would be nice.
EUR/USD has recovered to 1.2695 as US equities recover their lost ground. They are back to flat at the moment. Looks like we will hitch our wagon to the S&P for the balance of the session.