Thursday 20th May 2021
The FOMC minutes gave away more than expected, with the Fed suggesting it might be appropriate at some point to discuss a plan to adjust the pace of asset purchases, if the economic recovery continues. Lots of caveats there, but markets responding pushing 10-year Treasury yields up 5 basis points quickly afterwards. NAB’s David de Garis says the mere mention of tapering was enough to evoke a response, with inflation also back in full focus. Also today, Bitcoin lost almost a third of its value, before making most of it back again, after China announced a ban on financial institutions facilitating any transactions into or out of the currency. There’s also discussion on today’s Aussie employment numbers – NAB is more bullish than consensus on this, expecting the unemployment rate today.