In yesterday’s FOMC Minutes Instant Reaction piece, we used the analogy of Goldilocks and the Three Bears to describe Federal Reserve officials diverse views on whether the economy is running “too hot” or “too cold.”
Investors are keen to read in this afternoon’s meeting minutes from the Federal Reserve’s March meeting what factors caused them to remove the term “patient” from the policy statement, while signaling a lower terminal rate for its fed funds rate.
Treasuries and Eurodollars are higher in overnight trade, in sympathy with the lower than expected factory orders report out of Germany and falling yields there. U.S. domestic rate movement is quite modest thus far, recovering little of the two session decline following Friday’s sharp post-employment report advance.
U.S. stocks were set to open little changed on Wednesday, with traders eyeing a $70 billion mega-deal in the energy space and ahead of minutes from the most recent meeting of the Federal Reserve's policy-setting committee.