Traders Can’t Get Enough of Treasuries Even With Hawkish Fed
- Rising hawkishness bolsters central banks’ credibility: DBS
- Analysts see 10-year US yield dropping to 3.39% by year-end
Central banks have ramped up their hawkish rhetoric this month but for bond bulls, that’s a good thing.
Investors are piling into longer-dated notes on bets that policy makers will succeed in taming inflation, an outcome that will deliver strong and stable returns on debt. Benchmark 10-year Treasury yields have fallen 10 basis points this year to 3.77% even after the Federal Reserve jacked up interest rates aggressively and vowed to keep hiking.