- Analytics
- News and Tools
- Market News
- U.S. 10-year yields to edge higher as tapering set to begin in Q4 - Danske Bank
U.S. 10-year yields to edge higher as tapering set to begin in Q4 - Danske Bank
FXStreet reports that the Federal Reserve is in the process of preparing the market for a tapering decision in the near future. Economists at Danske Bank do not expect a firm tapering announcement before the September FOMC but tapering will of course be discussed at the upcoming Jackson Hole conference.
“We expect that the Fed will announce tapering at the September FOMC meeting and that tapering will actually begin in Q4. We expect that tapering will be concluded in summer 2022 followed by a rate hike late 2022.”
“Although a tapering announcement this autumn should be no major surprise to the market, we argue that the recent curve flattening is too early in the cycle. We still have a bond market that has to adapt to significantly lower QE purchases in 2022 and the first rate hike is also in our view moving closer in time.”
“We do see some upside for US yields in Q4 and in 2022. We also assume that a further improvement in the US labour market and a repricing of the current very low real rates will add upside to US 10Y yields. That said, the fear of a ‘peak’ in inflation and growth are factors that point to stable or even lower yields/flatter curves.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
