September 02, 2016
A leading global investment company with specialized expertise in equities, fixed income, and alternatives.
Fed: investors want deeds, not words
The global bond market rally that started following the February sell-off was brought to a halt over the past five trading days, on the back of a more hawkish tone from the US Federal Reserve (Fed). At the annual central banks’ gathering in Jackson Hole, Wyoming, Fed chair Janet Yellen said the case for a rate hike is now stronger, albeit still data-dependent. Investors’ reaction, however, has been mixed, a sign of their ongoing confusion following months of sometimes contradictory Fedspeak: US short term rates initially rose following Yellen’s Friday’s speech, only to fall afterwards. And the market-implied likelihood of a September hike – actually fell. Investors continue to be concerned that global data remains weak, and in the US, it is mixed. Aside from words, investors now hope Friday’s jobs report may shed more clarity on the state of the US economy. http://hvst.co/2bQnsvw
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