4 Dec 2013
Flash: Tapering concerning markets - Rabobank
FXstreet.com (London) - Strategists at Rabobank noted that all major stock markets took a step back yesterday, as the prospect of tapering by the Fed continues to concern the markets.
Key quotes:
“After all, we are getting closer to the next Fed meeting on December 17-18. The minutes of the previous meeting on October 29-30 said that the participants of the FOMC generally expected that the economic data would prove consistent with the Committee’s outlook for ongoing improvement in labor market conditions and would thus warrant trimming the pace of purchases in coming months”.
“The two most important indicators of the US business cycle, the nonfarm payrolls and the ISM manufacturing index may have actually exceeded the FOMC’s expectations and that has raised the probability of tapering in December. Consequently, the 10y US treasury yield has risen to 2.78% from 2.54% on October 30”.
Key quotes:
“After all, we are getting closer to the next Fed meeting on December 17-18. The minutes of the previous meeting on October 29-30 said that the participants of the FOMC generally expected that the economic data would prove consistent with the Committee’s outlook for ongoing improvement in labor market conditions and would thus warrant trimming the pace of purchases in coming months”.
“The two most important indicators of the US business cycle, the nonfarm payrolls and the ISM manufacturing index may have actually exceeded the FOMC’s expectations and that has raised the probability of tapering in December. Consequently, the 10y US treasury yield has risen to 2.78% from 2.54% on October 30”.