By continuing on this site you have agreed to cookies being placed and accessed by this website. More information and adjusting cookie settings.
'Clear communication by the Fed is not without its dangers'In such a scenario, fixed income markets at least have plenty of time to come to terms with the idea of a rate hike and up to now the central bank has been pretty successful in managing market expectations. According to Van Trigt, this scenario is not without its dangers, however: “A rate hike is approaching, but the market is only pricing in a minimal rise of 12.5 basis points in September and 25 basis points in the months that follow. If these rate hike steps occur earlier than planned this could have a major impact on the prices of short-dated paper."
Sign up for our email newsletter to receive updates and to stay informed about upcoming webinars.