Limited Scope for Fed Hikes Seen as Reason to be Bullish on U.S. 10-Year Treasurys
Dow Jones
2 hours ago
0502 GMT - Infrastructure Capital Advisors are bullish on the 10-year U.S. Treasury note as it anticipates the Federal Reserve will raise interest rates only one more time. One rate hike would be in line with the Fed's dot plots--or policymakers' rates forecast--, and would be fewer than priced in by markets, says the CEO and portfolio manager in a note. "The U.S. 10-year [yield] normally trades at 100 [bps] over the terminal Fed Funds rate so we expect the U.S. 10-year [yield] to stabilize in the 5% area as weak housing data and low CPI Core prints putting the Fed on hold," he says. The 10-year Treasury yield rises 3 bps to 5.306% in Asian trade, below Wednesday's 24-year intraday high of 5.365%, according to Tradeweb.
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