Wall Street Signals Bond Yields to Stay Lower, Fed Hikes or Not
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Fading Trump trade and haven flows keep yields near 2017 lows
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Expectation for gradual Fed balance-sheet taper also a factor
Stubbornly low Treasury yields are spurring Wall Street to slash forecasts for the months ahead, and whether the Federal Reserve winds up raising rates again has little to do with it.
At about 2.25 percent, 10-year yields are plumbing 2017 lows, following a rally Wednesday as the central bank signaled an imminent rate hike but also a gradual approach to shrinking its massive bond portfolio. Banks including Goldman Sachs Group Inc. and JPMorgan Chase & Co. cut year-end yield forecasts this month, while maintaining calls for more tightening. The underlying message: While the economy may be robust enough to warrant further Fed moves, the bond-market forces that drove yields to record lows last year are still intact…
Wall Street Signals Bond Yields to Stay Lower, Fed Hikes or Not
