Treasury yields traded sharply higher on Monday ahead of the Federal Reserve’s monetary policy announcement. The 2.7 percent rally in ten year yields and decline in the Dow Jones Industrial Average reflects the market’s belief that the central bank will begin discussions about reducing purchases this week. Typically, taper talk coincides with broad based dollar gains but the greenback was unchanged against sterling and lost value against euro, Canadian, Australian and New Zealand dollars. USD/JPY broke through 110 and USD/CHF knocked against 90 cents but the lack of consistency in the dollar’s overall performance ... (full story)