May
15
Wall Street’s Bond Forecasters Splinter as Fed Credibility Wanes
By-
Standard Chartered’s Costerg Sees Rate Cut Fueling Treasuries
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Bloomberg survey shows diverging views on U.S. economy, yields
To Thomas Costerg, the big question for bond investors isn’t whether the Federal Reserve will raise U.S. interest rates this year.
It’s how long before the central bank is forced to cut them.
As a senior economist at Standard Chartered, Costerg says the risk of a recession will cause the Fed to backtrack on its move to end seven years of near-zero rates. That will underpin demand for Treasuries and push benchmark yields to 1.6 percent, one of the lowest forecasts in Bloomberg’s latest survey…
Wall Street’s Bond Forecasters Splinter as Fed Credibility Wanes
