As we warned clients when the Federal Reserve cut interest rates: It usually always results in higher rates in the short-term. We'll prove that with some graphs below.
In today's news T. Rowe Price, the American publicly owned global investment management firm that has assets under management of more than $1.5 trillion commented that benchmark Treasury yields may soon hit a key level on the back of rising inflation expectations and concerns over US fiscal spending.
“The 10‑year Treasury yield will test the 5% threshold in the next six months, steepening the yield curve,” according to Arif Husain, chief investment officer of fixed-income, who helps oversee about $180 billion of assets at the firm.
He also went on to say:
"The fastest path to 5% “would be in the scenario that features shallow Fed rate cuts”
The outlook on the 10-year Treasury yield presents a stark contrast to prevailing market expectations for lower yields, following the Fed ...
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