After the recent US-Treasuries selloff drove benchmark 10-yr yields above 1.6%, the highest in a year, the 16-17 March FOMC meeting will be watched closely for hints policymakers are concerned about yields,, asset valuations and inflation.
A repricing of market interest rate expectations to anticipate a Fed hike as early as late Y 2022 is at odds with the Fed’s aim of keeping rates unchanged until the end of Y 2023.
The Fed looks like it is unperturbed so far by the higher bond yields, but, who knows it may feel it is time to push back against those rate-hike bets.
It is also expected to release new forecasts on economic growth as vaccines are distributed.
Have a healthy week, Keep the Faith!