The Fed Non-event And Its Cross Asset Fallout

John Briggs, Head of Cross Asset Strategy, RBS, analyzes the impact of the Fed’s action to hold off from their ‘tapering’ action. Cross asset research is the analysis of the impact of significant events on different types of asset classes, the interconnecting links between them and the formulation thereafter of an integrated view. Fed controlling rising interest rates The analyst’s opinion is that the main reason the Fed did not put a brake on QE3 was to control rising market interest rates. A Week Hence: Yields 10-year yields are down 20bps, while the conforming 30-year mortgage rate has fallen from…