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24 Feb 2015
Yellen’s Semi-annual Testimony in the limelight today – DB
FXStreet (Edinburgh) - Analysts at Deutsche Bank remark the relevance of today’s testimony by Chairwoman J.Yellen.
Key Quotes
“Given the February reversal in US rates, which has seen the 10yr rise a little under 50bps in less than a month, it will be interesting to see whether Yellen alters the message much from that in the January FOMC minutes which were read as being broadly dovish”.
“On a call yesterday, DB’s Peter Hooper argued that whilst Yellen may not vary too much from the recent minutes she may be slightly more hawkish, possibly attempting to downgrade the significance of the FOMC’s word of the moment - “patience” – without directly modifying it, possibly with an eye towards a more meaningful change in March”.
“This view doesn’t seem too far off the consensus in the market with the general bias being towards expecting a slightly more hawkish Yellen then we have seen on previous outings”.
Key Quotes
“Given the February reversal in US rates, which has seen the 10yr rise a little under 50bps in less than a month, it will be interesting to see whether Yellen alters the message much from that in the January FOMC minutes which were read as being broadly dovish”.
“On a call yesterday, DB’s Peter Hooper argued that whilst Yellen may not vary too much from the recent minutes she may be slightly more hawkish, possibly attempting to downgrade the significance of the FOMC’s word of the moment - “patience” – without directly modifying it, possibly with an eye towards a more meaningful change in March”.
“This view doesn’t seem too far off the consensus in the market with the general bias being towards expecting a slightly more hawkish Yellen then we have seen on previous outings”.