Apollo Chief Economist: Fed’s Abandonment of Forward Guidance Causes “Yo-Yo” Volatility in U.S. Treasuries

Torsten Slok, Chief Economist at Apollo Global Management, stated that the Federal Reserve’s abandonment of forward guidance is triggering historically rare volatility in the bond market, driving U.S. Treasury yields to fluctuate up and down like a “yo-yo.” Slok noted that market movements following the interest rate decision announced by the Federal Open Market Committee on Wednesday fully demonstrated this intense volatility. “The market can hardly find any clues to base its judgments on,” Slok said. “The basis for today’s decision is also somewhat elusive.” (Bloomberg Television)