No longer expect drastic movements in long-term interest rates

In the past, unexpected announcements of changes to monetary policy (for example the Federal Reserve’s rate hikes in 1994 or its announcement in 2013 that it would exit or “taper” quantitative easing) led to drastic movements in long-term interest rates in the United States and other countries. We believe that drastic interest rate movements can be ruled out today, as central banks: No longer want to surprise financial markets. They want to be transparent about their future decisions and prepare financial market participants for these decisions; Have the means to control long-term interest rates by buying or selling bonds, which they did not do in the past. Long-term interest rates should therefore be expected to follow a slow and steady path .