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Bond Traders are Doubting the Fed


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Bond Traders are Doubting the Fed

(New York)

Despite a seemingly very hawkish Fed, bond traders just aren't buying it, according to Bloomberg. Traders think the economy is burning very hot, and that the Fed, despite rhetoric, is actually content to just stick to only gradual rate hikes. According to one CIO, "The bond market is telling the Fed we see rising inflation pressures and if you are going to be gradual and crawl into three more rate hikes this year we are not going to wait around", continuing "The long end of the yield curve is tightening for the Fed".

FINSUM : Fed minutes did not show that the bank was considering four hikes this year, and the market thinks they should be.

  • bonds
  • Treasuries
  • yields
  • rates
  • inflation
  • fed

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.





This article appears in: Investing , Bonds




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