U.S. dollar gets strong bid in reaction Fed's 25 bps rate hike

• The market reaction to the Fed's rate hike is described as complex, with stock markets initially up but then showing some weakness.
• Bond yields saw a slight drop initially, with the 10-year hovering near 4.95% and the 2-year being more aggressive, leading to a flattening of the 2/10 spread.
• Strong economic data (Atlanta GDP, retail sales) and geopolitical developments are cited as drivers for bond market movements.
• The U.S. Dollar Index is experiencing a 'nice bid', reflecting interest rate dynamics.
• Monitoring corporate and sovereign issuance is crucial for understanding market nervousness.

CNBC's Rick Santelli analyzes the market's reaction to the Federal Reserve's quarter-point rate hike, noting a mixed response in bond yields and stock markets. He highlights strong economic data and geopolitical concerns as factors influencing yields, while the U.S. Dollar Index receives a bid.