He stressed that the central bank could start slowing its debt purchases in 2021, though it won’t rush to begin raising rates thereafter. He also expressed caution about the surging Delta variant, leaving traders to focus on August jobs data to gauge at which of the three remaining 2021 policy meetings the Fed might be confident enough to unveil its tapering plans. The yield curve, as measured by the gap between five- to 30-year yields, is around 111 basis points (bps). The flattening of recent months came as traders started to anticipate Fed liftoff from near-zero interest rates within the next couple of years. “The bond market is going to recalibrate, and we’ll start seeing a treasury market selloff.” ― Bloomberg

Source: The Star August 29, 2021 22:52 UTC