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 it will reduce the pace of the drawdown of its still-massive balance sheet, as it faces challenges in assessing market liquidity during an ongoing impasse over lifting the government’s borrowing limit.

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,