Citi sees lower yields, dollar pressure after Summers news

|By:, SA News Editor

Citi is out with some commentary on what the market reaction will likely be to Larry Summers' withdrawal from what many thought was a two-horse race for the Fed chairmanship.

Steven Englander of course sees "downward pressure on bond yields" and is willing to put a number on it: "[This] may be worth another 10-15 bps on the downside."

As for the dollar, Englander says it's "hard to see it as anything but negative for now."

Is a Yellen-run Fed a foregone conclusion? Maybe not: "This throws the field wide open between Janet Yellen, Donald Kohn, Roger Ferguson among others."

Treasury ETFs - TLH, TLT, IEF, DTYL, DLBL, ILTB, TENZ, ITE, TLO, EDV, VGIT, VGLT, TMF, TYD, LBND, UBT, UST, TMV, TYO, DSTJ, DSXJ, SBND, PST, TBT, DTYS, DLBS, TBF, TTT, TYNS, TYBS, TBX

Dollar ETFs - DBV, UUP, UDN, UUPT, UDNT

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