Midday market 10/21: FED changes plan, slows down rate hike process

US stock market opens not very optimistic with SPY pushed back near 362 under pressure from bond yields as 10Y breaks through 4.3% to the peak of the 2008 economic crisis.

Current yield levels place strong pressure on the financial system not only in the US with Bank of Japan intervening in the market and urgently buying bonds last night to keep rates below the current cap. Additionally, signs of FED intervention are quite evident as it pumped $11 billion through Swiss banks over the past 2 days, along with over $6 billion last week, to stabilize the liquidity environment in Europe.