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Analysis: What taper? Low rates for longer is key Fed theme for 2014
Reuters: Debate over when the Federal Reserve could trim its bond purchases monopolized market talk this year, but as a new Fed chief takes charge, more participants believe the key theme to emphasize for 2014 is low rates for longer.
For the bond market, which suffered a number of doomsday predictions for 2013 that never materialized, that means yields could also remain low. Even if they do rise, it might not be by much, since benchmark 10-year yields have already had a 100-plus basis point increase from lows hit in May.
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