• Central banks are turning hawkish left and right, but so far the damage in markets seems contained. The biggest change came at the Fed, where in the words of San Francisco Fed chief Mary Daly they are now engaged in “talking about talking about tapering.” None other than Vice Chair Richard Clarida joined the taper camp yesterday even if the labor market continues to underperform. More on that further down below.
  • At its monetary policy meeting overnight, the RBNZ flagged a mid-2022 rate hike, which sparked a sell-off in the New Zealand bond market. At pixel time yields were up 7-10bp, with the 5y hit hardest. Not that the Bank of Canada got there first by guiding for a hike next year.

For the full report, click here