US Treasury yield curve likely to deepen further amid aggressive Fed policy tighteningsaid Meghan Swiber, director of US rate strategy at Bank of America (BofA).
Featured Comments (via Bloomberg)
Although investments in the US beyond 50 basis points have been rare in recent decades, “there is no natural limit to the inversion of the 2-10 year curve.”
The prospect of a hard landing for the US economy “will likely cause the curves to flatten, as short-term hikes will likely be seen as necessary cuts in the future.”
If growth remains strong, “the curve could continue to flatten, but to a lesser extent, with longer maturities also supported.”
They should “maintain positions of flattening the curve until inflation and employment data moderate, given the possible upward revaluation of the terminal rate.”
Source: Fx Street
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