Discussion
The cross-asset market reaction to today’s hot PMI data and subsequent move across the FICC complex is in a word: lame.
IG CDX is barely up.
Advance/decline issues and volume show little concern.
Defensive sectors can’t catch a relative bid. And VVIX has faded off its highs and never traded above VIX.
Conclusion: This market knows Yellen/Brainard will not allow hot data to impact the relentless move up in SPOOZ.