BMO analysts cite yield rise as case for October rate pause
BMO analysts said rising nominal and real yields have already raised borrowing costs more than an additional quarter-point hike could accomplish, supporting a potential October pause.
BMO analysts said in a research note that rising market yields are already doing much of the Federal Reserve’s work. They said the steady increase in nominal and real yields has raised borrowing costs more than another quarter-point hike could achieve. Higher borrowing costs are tightening financial conditions, according to the note.