An almost impossible balancing act

Christian Hawkesby  | Harbour Asset Management | 06 June 2013

Executive summary

• Both global and New Zealand long-term global bond yields rose sharply in May, driven by fears that the US Federal Reserve may begin to taper Quantitative Easing (QE) sooner than expected.

• As the US economy continues to recover from the GFC, the US Fed faces the almost impossible balancing act of drawing back the extreme level of policy stimulus without...