Taper tantrum

By | 2017-09-13T15:47:53+00:00 13th September 2017|

Taper tantrum became the nickname of the 2013 surge in U.S. Treasury yields, resulting from the US Federal Reserve’s decision to gradually reduce (or taper) the amount of money it was feeding into the economy. This cash feeding of the economy was via quantitative easing. Investors panicked in reaction to news of this tapering and drew their money rapidly out of the bond market, drastically increasing bond yields.