Treasury Yields Can Fall to 2% on Recession Risks, Jupiter Says
- There’s enough data for Fed to go on hold soon: Bezalel
- Fund manager likes US, Australian and Korean government bonds
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The Federal Reserve could cut interest rates this year, sending Treasury yields tumbling as the risks of a recession become ever more real, according to Jupiter Asset Management.
A global downturn spurred by the most aggressive US rate hikes since the 1980s could see 10-year Treasury yields fall to as low as 2% as investors rush to haven assets, said Ariel Bezalel, a money manager in London. That’s almost 160 basis points lower than where the notes were trading on Wednesday, even as Treasury yields dropped following gains in European government debt.