Short-term market sentiment improved as the debt ceiling was raised in February, although rates have not increased significantly. Minutes from the Federal Open Market Committee meeting suggest that the Fed is committed to tapering its asset purchases and to keeping interest rates low for longer.
Amid a successful first launch of Floating Rate Notes and an extension of the reverse repo facility, the falling supply of Treasury bills and another debt ceiling deadline could pose challenges for money market investors.
Invesco Fixed Income (IFI) held our semi-annual Investors’ Summit in mid-January, bringing together over 80 of our senior leaders and sector team representatives to assess key themes affecting the global markets and determine our strategic views for the next 12–18 months.
Fast forward five years. Let’s imagine this hypothetical scenario: The era of quantitative easing is over. The Federal Reserve (Fed) completed tapering its asset purchases during the fourth quarter of 2014.