The release of the FOMC minutes yesterday did not move the market significantly as they further confirmed that the Federal Reserve is set to raise rates again in September, explains the research team at Danske Bank.
Key Quotes
“Beyond that, it reiterated the Fed’s focus on the flattening of the yield curve. In this regard, note that the 2Y 10Y US yield curve flattened further to 22bp – the lowest level this year.”
“In addition, there was a long discussion about the implication for the future monetary policy framework from the risk of hitting the effective lower bound on interest rates again in the future.”
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