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Bond Investors’ Inflation Angst Rises on Fed’s Lack of Guidance
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DNyuz
The yield on the 30-year Treasury bond also held steady after hitting its highest level since 2007 on Wednesday.
But experts said that financial markets would still reflect what investors expected the Fed to do, just with less clarity.
That uncertainty means bond investors are likely to demand higher yields to protect against the risk of losing money if interest rates end up being higher than expected.
Higher yields means higher borrowing costs for everyone from the government to companies to consumers.
The post Bond Investors’ Inflation Angst Rises on Fed’s Lack of Guidance appeared first on New York Times.