Investors like to find a ‘story’ to explain complicated markets, and the stories stick around until a shock brings them to an end. Since 2009, there have been four stories that dominated the US Treasury market for certain periods, each about what the Fed would do next. Investors now need to figure out what could disrupt the current story, and they should be looking at this week’s Fed monetary policy statement with interest.
About the authors
Economist Insights is written by Joshua McCallum and Gianluca Moretti. Joshua has been working at Global Asset Management with the title of Senior Fixed Income Economist since 2005. Prior to this, he worked at the UK Treasury as a macroeconomist. Gianluca joined Global Asset Management in 2010. Prior to this he worked at the Italian central bank.
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