Hoey also continues to expect a three-phase upward adjustment of bond yields over a half-decade period, as outlined in the report entitled "Interest Rate Normalization" dated September 12, 2013. The first phase is an adjustment to free-market levels from artificially low bond yields, which reflect an artificial scarcity of bonds due to large scale bond purchases under QE3.
"This adjustment is underway, but in a choppy pattern, due to the Fed's 'Hamlet syndrome' about beginning the tapering down of QE3. To taper or not to taper? That is the question," Hoey concludes.
See http://www.bnymellon.com/foresight/markets-economy/economic-update-video-richard-hoey.html for Hoey's complete "Seven Year Expansion" Economic Update.
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