U.S. Treasury yields were mixed on Thursday morning as investors continued to digest the Federal Reserve's taper announcement.
rose by less than a basis point at 1.9958%. Yields move inversely to prices and 1 basis point is equal to 0.01%.The central bank is set to reduce its bond purchases by $15 billion per month, meaning its quantitative easing should end by the middle of 2022.
However, Gurpreet Gill, macro strategist of global fixed income at Goldman Sachs Asset Management, said on Wednesday that "surprises on the path of the pandemic, inflation, expectations for inflation, or wage growth could prompt a changed taper pace and impact the rate outlook." Gill noted that yields on short-dated U.S. bonds had risen less than those in other markets on hawkish central bank talk, but said this was because the Federal Open Market Committee had indicated its first interest rate hike would require fuller employment.
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