Henderson's Pattullo: 50/50 chance of Fed abandoning taper plans

clock

The heavy sell-off in the US treasury market over the past two months could force the Fed to postpone its plans to begin reducing its asset purchase programme, according to Henderson's John Pattullo.

Bond markets have suffered after the Fed indicated it may begin tapering its quantitative easing programme towards the end of 2013, with global bond funds suffering their worst month in 20 years in May and that slump continuing into June. Notably, Pattullo (pictured) said the sell-off, which has seen yields on 10-year paper spiking from 1.66% at the start of May to 2.6% last week, has also weighed on the long end of the mortgage market. He said a potential slowdown in mortgage demand would stunt the US economic recovery, which could lead the Fed to change tack. "The Federal Reserv...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

Event Voice: Your questions answered by FSSA Investment Managers at the Emerging Markets Conference

Event Voice: Your questions answered by FSSA Investment Managers at the Emerging Markets Conference

Angus Sandison, Investment Analyst, FSSA Investment Managers
clock 24 April 2025 • 3 min read
US M&A spending jumps 50% in March as deal volume declines

US M&A spending jumps 50% in March as deal volume declines

Near 6% drop in number of deals happening

Eve Maddock-Jones
clock 23 April 2025 • 1 min read
Stories of the week: The FCA, Bank of America and Neil Woodford

Stories of the week: The FCA, Bank of America and Neil Woodford

Recession expectations, AI chips and Hargreaves Lansdown: The biggest stories from the world of investment and asset management this week

clock 17 April 2025 • 1 min read
Trustpilot