Hidehiko Maejima
Hidehiko Maejima
attract difficult higher maturity strong trigger yields
At this juncture, it would be difficult to attract strong demand, especially for 30-year maturity. It will trigger higher yields in 10-year securities.
adverse concerned costs energy faster fed growth higher impact posing pressure prices producer rather risk
The Fed is concerned that higher energy costs may give an adverse impact on growth rather than posing a risk to faster inflation. Producer prices also showed latent inflationary pressure eased.
advantage again investors level month percent possible rally test yields
We see a possible rally this month as investors take advantage of yields at these levels. We may test the 4.5 percent level again this month.
bond data economy economy-and-economics employment expect fed growth hike market push rates strength yields
Employment growth will keep the economy going and the bond market will be susceptible to the strength of the data that will push the Fed to hike rates again. We expect yields to rise.
building fed helps next pause percent raising rates sentiment
Sentiment is building that the Fed may pause for a while after raising rates to 5 percent next month. That helps shorter-maturity debt, especially two-year notes.
argue changed data decline economic growth picture seeing shows
The economic picture has not changed and it is still one that shows growth will be strong. The data we are seeing does not argue for a sustainable decline in yields.
current fed floor fund percent rate seems serving
The current fed fund rate of 4.50 percent seems to be serving as a floor for the 10-year yield.
data fed hiking inflation led next rise support view week yields
The inflation data we will see this week and next will support the view the Fed can keep on hiking at the next two meetings. Yields will rise led by the shorter-maturity debt.