Treasure yields (^FVX, ^TNX, ^TYX) are tracking 15-month lows after August's Consumer Price Index (CPI) gave the Federal Reserve more data to consider as it ...
. Newton Investment Management head of fixed income Ella Hoxha joins Catalysts to discuss the bond market 's outlook when interest rates start to fall.
Hoxha notes that the biggest beneficiary position for bonds is in the front end of the curve, and points to the rally of two-year bonds outperforming ten-year bonds. She explains that the disinversion of the yield curve has been an"important pivot point" for bond markets, which signals a potential economic slowdown ahead.
Um And so typically an inflation print that's in line to slightly higher is probably seen as tiny uh hawkish surprise.But you know, that's one explanation for the initial reaction. So two year maturities have done very well in terms of rallying hard and we've seen some sting of the curve. And we are certainly more on the camp that believes growth will surprise on the downside towards the end of this year or beginning of next year.
Uh But we can see um if indeed this view that uh we're gonna get a much uh well, a more meaningful slowdown, I would say if that gets confirmed, uh then we can certainly see uh perhaps at least another 70 base, these points were so uh rallied from here, but we can always overshoot.So depending on the size and magnitude of that slow down, if confirmed, we can also go towards sub 3% or even 2.
Bond Market Ella Hoxha Federal Reserve Economic Slowdown Pivot Point
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Younger Americans opting to build wealth from collecting artYounger Americans are steering away from the traditional paths to wealth through stocks (^DJI, ^IXIC, ^GSPC) and bonds (^TYX, ^TNX, ^FVX), increasingly...
Read more »
Bonds: Extended duration risks aren't as 'attractive' anymoreBond market traders (^TYX, ^TNX, ^FVX) are making moves ahead of the Federal Reserve's Jackson Hole Economic Symposium this week and anticipated interest...
Read more »
Powell's speech has 'ratified' the path for Treasury yieldsWhile equities (^DJI, ^IXIC, ^GSPC) experience gains coming off of Federal Reserve Chair Jerome Powell's speech, bond yields (^TYX, ^TNX, ^FVX) are sliding...
Read more »
Markets set to gauge strength of consumer on CPI, retail dataEquities (^DJI, ^IXIC, ^GSPC) and the bond market (^TYX, ^TNX, ^FVX) are fickle over the uncertainty surrounding this week's economic data ahead of the...
Read more »
Long duration 'becomes your friend' when Fed cuts ratesBond yields (^TYX, ^TNX, ^FVX) have been tumbling since Federal Reserve Chair Jerome Powell signaled the central bank may begin cutting interest rates in...
Read more »
Treasuries are just as data-dependent as the FedTreasury yields (^FVX, ^TNX, ^TYX) are trending upward as investors await July's Personal Consumption Expenditure (PCE) index — the Federal Reserve's...
Read more »