Policy Uncertainty, Inflation Risks to Continue to Weigh on Long-End Treasurys
Dow Jones
Jul 31
0520 GMT - Despite three dissents, the Federal Reserve's decision on Wednesday to remain on hold reinforces Societe Generale strategists' view that policy uncertainty and inflation risks will continue to weigh on the long end of the curve, they say in a note. "While investors push out the timing of future hikes, higher real yields and firmer inflation expectations suggest markets are increasingly questioning the Fed's willingness to act," the strategists say. Regarding view on positioning, the strategists have moved from a flattening bias to a neutral curve stance and favor inflation breakevens as a hedge against rising inflation risk premia, they say.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.