US Rates: Tales of the taper

Alex Roever is joined by Mike Feroli and Jay Barry to discuss the outcome of the December FOMC meeting and the impact on the US rates market.  The Fed made major changes to its policy statement, and the latest SEP indicate an early policy liftoff and a faster pace of hikes in 2022 and 2023.  This largely aligns with our forecast that the Fed will liftoff in June and then tighten at a quarterly pace thereafter.  In the aftermath of this meeting, front-end Treasury yields declined and the curve broadly steepened.  We discuss the impact of valuations, positioning, and liquidity on the rates markets in the aftermath of the Fed meeting

This podcast was recorded on December 16, 2021.

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