An increase in the Fed's overnight rate to 4.75 percent may cool the housing market and slow growth. Treasuries' yield curve may flatten. |
As long as the yuan controls remain, China will have to keep on buying U.S. dollar assets. It's nothing to be too worried about. |
Better times for Treasuries are coming soon and a 5 percent yield is a good time to buy. The selling has been excessive. Once you have a bad economic number, like a slowing housing market, people will start buying back. |
Economic activity is very strong this quarter and the Fed will have to raise rates to keep inflation under control. The market sentiment is still on the bearish side. |
It is a contained number and we don't have to worry about inflation. With the Fed expected to raise rates again, it becomes even less of a concern. |
We don't see the Fed as being too hawkish as inflation is under control. The bearish trend may be put on hold for a while. |
Yields on Treasuries, especially shorter-maturity debt, will have a bias to rise in the next one or two months. |