24 Mar Fixed Income Perspectives – ‘The Ides of Accommodative Policy? Not so Fast’
Posted at 12:27h
in perspectives
Voya Investment Management – Fixed Income Perspectives – March 2017
With the market pricing in a near certainty of a March hike, the Federal Reserve delivered by raising interest rates another 25 basis points. This was quite the turnaround from a few weeks ago, when market expectations for a hike in March were below 30%. Despite these low expectations, the Fed pushed the market for the first time in years with a stream of hawkish commentary, as evidenced by the almost 70% jump in implied probability of a hike in just a week.
In our opinion, Yellen and company acted with good reason.