US stocks erase losses as yields plunge

<p>It's been a long, slow recovery but the S&amp;P 500 is now flat on the day.</p><p>The recovery comes as the bond market shrugs laughs off the CPI report. US 2 year yields are now down 11 bps on the day and the Fed funds curve is pricing in more cuts than before CPI.</p><p>Maybe that was the market positioning too hawkishly into the data and a heavy slate of Treasury supply. Or maybe the bond market worried about imminent strikes in Yemen and stocks are blindly following bonds.</p><p>Whatever the case, stocks have proven to be resilient over the past 10 weeks and that's tough to ignore.</p>

This article was written by Adam Button at www.forexlive.com.