Invesco US
March 08, 2018
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Interest rate outlook: Why we expect Treasury rates to stay contained

Interest rate outlook: Why we expect Treasury rates to stay contained

By Rob Waldner, Chief Startegist and Head of Multi-Sector

US:

Strengthening inflation data have driven US yields higher in recent weeks. We expect inflation to remain on the higher side in the coming months due to statistical comparisons to a low base, but we also believe this effect should fade. Nevertheless, we have revised our 2018 expectation for US Federal Reserve (Fed) interest rate hikes from two to three due to the price pick-up. Continued broad-based price pressures could lead the Fed to hike four times this year, but this is not our base case. At this point, we do not believe the market is worried that the Fed is letting inflation get away from it (which could cause markets to overreact, driving rates higher and creating a financial shock). While uncertainty over inflation will likely keep rates volatile for now, low non-US government yields...

Continue reading the full article, Interest rate outlook: Why we expect Treasury rates to stay contained , on Invesco US Blog.

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