US indicies drop as Fed ends SLR relief
US500 plunged below 3,900 pts in a knee-jerk move after Fed announcement
US and European indices took a hit after the Fed announced that it will not seek an extension to Supplementary Leverage Ratio relief, that is set to expire at the end of March. SLR relief allowed Banks to include deposits and Treasuries while calculating supplementary relief ratio. Now government bonds and deposits will once again be treated as assets. Announcement is seen as negative for banks. S&P 500 futures dipped below 3,900 pts in a knee-jerk move while 10-year Treasury yields jumped above 1.71%.
US500 dipped below 3,900 pts after Fed announcement but the index has mostly recovered from the drop already.