Flash: What could cause US yields to pull-back in coming months? - BNZ

FXstreet.com (Barcelona) - Kymberly Martin, strategist at BNZ has taken a look at what could cause US yields to pull-bank in coming months.

She feels that economic data delivery is crucial, and rising yields may in themselves impact on data delivery. Further she adds that If rising yields undermine the growth outlook about which the Fed has expressed optimism, it could be forced to soften ‘tapering’ rhetoric. Alternatively, she sees that if US employment data does not improve as expected or US inflation shows no sign of picking up, the tapering schedule will also likely be revisited. Finally, she writes, “If the eerie quiet in Eurozone is broken by some negative ‘risk’ event, this could reignite demand for ‘safe haven’ bonds.”