Fed’s Hawkish Shadow Continues to Fuel Tumult in Bond Market

Fed’s Hawkish Shadow Continues to Fuel Tumult in Bond Market


(Bloomberg) — Across⁤ Wall​ Street, there’s growing relief that the Federal Reserve — at long last​ — may be done⁤ raising interest rates. But that ‍doesn’t mean turbulence ⁢in the bond⁣ market will soon become a thing of the past.

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Investors anticipate that US Treasuries will continue to be​ whipsawed by⁤ heightened volatility as economic uncertainty threatens ⁣to alter⁣ the ​central bank’s path or ⁢keep rates pinned higher for far longer than traders​ currently expect.

Already, some Fed officials are underscoring that there may still ⁤be more ‍work⁤ to do as inflation‍ continues to hold above their​ 2% target despite the most aggressive monetary policy tightening in four decades. At Barclays, strategists have advised clients to sell two-year ‍Treasuries on anticipation that rates will remain elevated next year, bucking broader speculation that‌ the Fed will⁣ initiate a series of rate cuts as soon as March. And benchmark 10-year yields — a baseline⁤ for the broader…

2023-08-12 15:00:00
Post ⁢from finance.yahoo.com
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