The Fed Just Confused the Entire Market. Here's What It Actually Means for Singapore π¦
The Fed Just Confused the Entire Market. Here's What It Actually Means for Singapore π¦
π The Angle
Three Fed officials wanted a rate hike, not a hold. The 30-year Treasury yield just crossed 5.2 percent, a level not seen since 2007. The bond market is pricing a 57 percent chance of a September hike, up sharply from before this week.
π° What It Means For You
Your CPF Special Account rate does not move with Fed noise, it is set by our government on its own schedule. But SORA, which prices your floating mortgage and much REIT debt, tracks global US dollar funding costs over time. If the Fed hikes in September, that is upward pressure on SORA down the line. Iggy's Forensic Zone: Zone 2, Watch.
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