Week Ahead: Dollar rally continues as US yields rise
March 5, 2021SharePrint
The taperless tantrum could continue across financial markets now that it seems clear Fed Chair Powell won’t react until he sees disorderly market conditions or if financial conditions tighten further. Positive economic, such as this past employment report might continue to fuel optimism about the economic outlook and that could raise expectations that the Fed will raise rates sooner.
US
Financial markets will have their hands full trying to balance the impact on another massive relief bill, an improving labor market, and a bond market selloff that appears to have no signs of slowing down. The dollar has been running wild following the move in Treasuries and most signs are suggesting that move could continue.