Recapping the day's news and newsmakers through the lens of CNBC.
The 10-year Treasury taper caper
The Fed will taper in September! Then again, maybe it won't. December's an option.
Since the Fed won't commit, the guessing game continues. The fixation of the moment is on the 10-year Treasury yield, which has climbed steeply to about 2.8 percent—up 120 basis points in three-and-a-half months.
The theory is that rising yields, which are caused by falling bond prices from heavy sales, could lead the Fed to postpone tapering. Because the 10-year Treasury is a benchmark, the Fed may feel that a spike in the 10-year yield will slow the economy.
And the uncertainty is making it hard for traders and investors to place their bets, making the markets more volatile and contributing to the recent dip in stock prices.
"The rapid rise in yields could make the Federal Reserve nervous especially if it nears the 2.9 percent mark."
—Kathy Lien, managing director of FX Strategy at BK Asset Management
"We think investors may have run ahead of themselves. After all, even if the Fed does start to scale back its bond purchases in September as we expect, interest rates will remain very low for an extended period of time."
—Jessica Hind of Capital Economics