Daily Commentary BY THE CURVE TEAM –

Daily Insights – Fed Tapers

4th of November, 2021

Fed Tapers

  • Purchases will be reduced by $15 billion a month beginning this month.
  • Their current rate of purchases is $120 billion a week.
  • The announced tapering plan would mean there would be no QE program from mid 2022.
  • Yields steepened as a result.

Building Approvals Normalising

  • Dwelling approvals fell 4.3% in September, with private sector housing down 16%.
  • They still remain elevated on pre covid levels.

Bank of England Interest Rate Decision

  • The board is split as to whether to raise the cash rate to 0.25% or leave it at 0.10%.
  • The decision will be announced by tomorrow.

Josh Stewart

Associate - Money Markets