Downside Risks Rise for U.S. Treasury Yields After Fed Rate Hike
Dow Jones
6 hours ago
0517 GMT - The balance of risks for U.S. Treasury yields has shifted to the downside relative to current forward pricing, following the Federal Reserve's unanimous 25-basis-point rate hike on Wednesday, SEB's Jussi Hiljanen says in a note. "The dot plot signals one further hike this year and leaves open the possibility of another in 2027," the chief rates strategist says. With markets discounting 75 basis points of additional tightening by summer 2027, SEB thinks maximum hawkishness in market pricing has been reached, reducing the likelihood of further major bond selloffs, he says.
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