Fed's Communication Shift Has Contributed to Higher Volatility -- Market Talk

0537 GMT - The shift in the Federal Reserve's communication approach has supported a pickup in volatility around the policy path and across the curve in U.S. rates, Goldman Sachs' Friedrich Schaper says in a note. "We think the increased policy uncertainty behind that volatility has contributed to the recent rise in term premium that took long-end yields to multi-cycle highs," the analyst says. In addition to macro risks and policy uncertainty, the broader debt supply backdrop likely has contributed to the cautious demand picture, he says. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

August 21, 2026 01:37 ET (05:37 GMT)