UPSCSSCBANKINGSTATE-PSC
Bond market adjusts as investors anticipate a shallow Fed easing cycle due to persistent inflation.
Summary
Bond investors are adjusting their portfolios, favoring intermediate-term US Treasuries due to expectations of a limited easing cycle by the Federal Reserve. This shift reflects concerns about persistent inflation and the stickiness of long-term yields, impacting the bond market dynamics.
Key Points
- Investors are shifting towards intermediate-term US Treasuries.
- The Federal Reserve is expected to implement a shallow easing cycle.
- Inflation remains a concern, influencing bond market strategies.
- Long-term yields are experiencing stickiness.
Full Article
Investors expect a shallow Fed easing cycle, shifting preference to intermediate Treasuries as inflation stays stubborn and long-term yields remain sticky, prompting portfolio adjustments across the bond market.
#business#economy#upsc#banking#ssc#rbi