Slowing its balance-sheet runoff means the Fed will buy more Treasuries. But don’t look for any big downdraft in yields.

The Federal Reserve said on Wednesday that starting next month it will slow the pace of its balance sheet drawdown amid an ongoing impasse over lifting the government’s borrowing limit, a shift that will likely hold for the remainder of the process.

Financial markets are not just focused on what the Federal Reserve says about the future path of interest rates on Wednesday. The markets are also on alert for changes to the Fed’s ongoing runoff of its balance sheet,