Listen: Gauging The Taper Tantrum Fallout

Federal Reserve Chairman Jerome Powell sent a message to jittery bond markets this week: calm down. But are traders and investors listening? 10-year Treasury yields have continued their march higher on expectations of an economic recovery and rising inflation, sparking concern that the move could eventually spiral into a taper tantrum similar to that seen in 2013. In this podcast, ING's Chris Turner discusses the prospects of a further sharp sell-off in bonds and the implications for global markets.

In Congressional testimony this week, Fed Chair Powell stressed that the central bank has no intention of tightening monetary policy any time soon. The pandemic is far from over, inflation is not a serious threat and millions of Americans remain out of work, he said. Yet financial markets have moved quickly to price in an economic recovery, with the yield on the 10-year Treasury note rising above 1.4% on Wednesday for the first time since last February.

The speed of the move has sparked concern that financial conditions could tighten too quickly, undermining the rally in stocks and sending ripples through other asset markets around the world. In this podcast, ING's Global Head of Markets Chris Turner tells Senior Editor Rebecca Byrne what a 'taper tantrum' could mean for stocks, bonds, currencies and commodities this year. 

Disclaimer: This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does ...

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