Last night a friend asked me if I thought 25, or 50 basis point cut. I opined it would be 25. Wrong. Though discussed here recently, the implications of a 50 basis point cut and the possibility of a "melt up". Key will be follow though in the days ahead to today's large short covering rally.
10 year treasurys have remained fairly static while the short end has caught a large bid. So the yield curve has steepened in the aftermath of the 50 bps rate cut. The dollar index, meantime, is down to just about the 79 level.
Also underway, a breath taking move down in the VIX... slumping by more than 20%.
More on that later.