Fed Tapers Despite EM (Redline Text Comparison)

The Fed's decision to taper by another $10 billion despite the sell-off in emerging markets reflects its improved confidence in the ability to let forward guidance stir yields lower and highlight the notion that that tapering is a normalization of policy and not a tightening of financial conditions.The barrier to tapering has also being diminished by the 8% in yields since the December FOMC, which contrasts with the 82% spike in yields between May and the September decision to not taper. Full charts & analysis

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