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Bonds, Stocks Slide As Market Prices In 2022 Rate 'Liftoff'

Tyler Durden's Photo
by Tyler Durden
Thursday, Sep 23, 2021 - 09:18 AM

Argue all you like that "tapering is not tightening" or that "the taper and rate cycle are not connected", but the market says otherwise (knowing the monetary policy regime is changing and pricing in an endpoint) and is now pricing in a rate liftoff by the end of 2022...

And furthermore, the rates market is beginning to catch up to The Fed's new dot-plot trajectory for rates...

That has sent yields higher on bonds...

And reversed gains in stocks...

Remember, don't fight The Fed! (and The Fed is 'tightening'

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