Taper Isn’t Tightening as Bonds See No Rate Boost Until ’15
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The $11.7 trillion Treasury market is betting on history not repeating as the Federal Reserve moves closer to reducing its unprecedented stimulus.
From futures to derivatives, traders don’t see the central bank raising its benchmark interest rate from a record low until nine months after policy makers end their monthly bond purchases of $85 billion, or late 2015. In September, when the Treasury market was tumbling in the midst of its worst year since 2009, the projected gap was two months, according to Barclays Plc.