US wrap: DXY rallied against nearly all in the G10 - ANZ

Analysts at ANZ offered a market wrap from the NY closing session.

Key Quotes:

"The market ran with the passage of the 2018 budget, anticipating tax reform getting through Senate. 

Passing a budget unlocks reconciliation, which enables the GOP to pass a tax bill with a simple 51- vote majority in the Senate, negating a possible Democratic filibuster. US Treasuries bear steepened, the dollar rallied, equities spiked and commodities were mixed. 

US 10 year rose as much as 7bps to 2.38%, while the 2 year climbed 4bps to 1.57%. Yields in Europe also bear steepened, but to a lesser degree. 

Yields briefly fell from the highs on news that Yellen was at the Whitehouse; however, after it was reported that it was a routine meeting, yields returned to highs. 

The dollar rallied against nearly all in the G10 with CAD underperforming, after CPI disappointed and retail sales collapsed. NZD continued to fall, down 1% to 0.6970. GBP rose 0.2% against the dollar on the second day of a European Union summit. 

US equites rallied 0.6%, printing new records yet again. European bourses were largely unchanged. Gold fell back to USD1280/oz driven by the dollar strengthening and oil climbed 0.4%."