Halister News

(Bloomberg) -- Fed is on track to announce balance-sheet plan this year, yet “there are a number of headwinds on the horizon that could push this out into 2018,” Brean Capital head of fixed-income strategy, Scott Buchta, writes in note.

• Headline risk remains high and “technicals continue to override fundamentals as evidenced by last Friday’s brief move to a new 2017 intraday low in rates”
• In phone interview, Buchta said headwinds include a lack of GDP growth, weak retail sector, and questions about how much fiscal stimulus can get passed in 2017
• Fed Chair Yellen, in remarks later on Monday, could discuss balance sheet in very broad terms
  • NOTE: Yellen is set to speak at University of Michigan in Ann Arbor at ~4:10pm ET