Treasury 10-year yields may drop to 1.75% by year-end if the U.S.-China trade war goes full throttle, says Western Asset Management LLC.
Yields may keep falling even though they have already tumbled to about 2.10% from a seven-year high of 3.26% set in October, according to portfolio manager Mark Lindbloom. The trigger: a cocktail of lower inflation, cooling global growth and a worsening in U.S.-China trade tensions.
“There’s nothing special about 2 percent for 10-year notes,” Lindbloom said. “If we were to go down that path, we would be quick to add duration.”
Fed policy makers will meet Tuesday and Wednesday to set rates, with many economics and bond traders ratcheting up bets they will ease this year to boost the economy.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.