Inflation is under control and inflationary pressures are subdued. We are looking for opportunities to get into the market, preferably in Treasuries maturing in five years or more. |
The upside of Treasuries is looking heavy given the looming auctions. |
These are very attractive levels to buy. Investors will take a weaker durable goods number as an excuse to get into the market. |
Treasuries are near the levels where investors think they offer value. Core inflation looks calm, so rising oil prices are primarily a threat to growth as they are like a tax hike for consumers. |
We are starting to price in the possibility of increasing inflationary pressures when making decisions on our bond holdings. We now see a bigger chance the Fed will hike rates three more times and Treasury yields will continue to rise. |
We're bullish on longer-term Treasuries because inflation is under control. We're not expecting any surprises from the Fed beyond what is already priced in. Treasuries at these levels are more likely to rally. |
With inflation under control it will be easier for the Fed to signal its intention to stop raising interest rates soon. Treasuries still have room to go higher. |