22 Aug Fixed Income Perspectives – Balance Sheet in Focus, Tightening Still On Horizon
Market expectations for another hike this year have fallen below 40%, but recent economic data keep the door open.
Voya Investment Management – Fixed Income Perspectives – August 2017
As we approach the end of (the northern hemisphere) summer, the near-term focus for the bond market is the expected announcement detailing the Federal Reserve’s plans for reducing its balance sheet. The reduction in holdings should start with $6 billion in U.S. Treasury and $4 billion in agency debt and mortgage-backed securities, gradually rising to $20 billion per month over a year. The Fed is not the only central bank in play.