The U.S. 10 Yr note is on the march towards 3.5% danger zone again as the risk appetite returns to equities and bonds are bid down. Taper worked for a while as emerging markets got crushed forcing money back into U.S. bonds for the whole of January. What "tool" does the Fed have left? Maybe un-taper when the yield gets above 3.0% again and start buying even more bonds than before the taper? This will get interesting.
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