Treasury yields are trending higher as investors brace themselves for the Federal Reserve’s highly anticipated decision on Wednesday. To shed light on the factors driving this yield movement, Truist’s Managing Director of Fixed Income Chip Hughey joins Yahoo Finance Live.
Hughey attributes the rise in yields to three factors: the continued stickiness in inflation data, the Fed’s likelihood to maintain a “higher-for-longer” stance, and strong Treasury issuance. However, he notes that “the biggest factor for yields” has been the market’s pricing of six to seven rate cuts, which has now been revised to below three, resulting in “big implications on the yield curve.”
Hughey believes the Fed could initiate rate cuts mid-year when they have a “sufficient” amount of evidence of cooling inflation. Although he acknowledges the increasing probability of zero cuts occurring in 2024, he does not believe that scenario will materialize, stating that despite “a bumpy path,” the Fed “will see that inflation is cooling.”
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Isn't TRUIST shutting down 72 branches???
2025 2Q maybe… Layoffs, bankruptcy , bannking issues, FEDERAL GOVERMENT IS BANKRUPT.. Comercial Lending is in Trouble, Housing forclousures along with Car loan DEFAULTS..
FED CANNOT Cut Rates.. Fools playing games… Market wants it, its not going to help Working America… SCAM
Not really, no! I don't believe in rate cuts this year!
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Why even listen to this bs
Big Bubble😂
Hah! Higher for longer.
The fed must not cut rates until food prices go down!!!
We need the meme; "You sure about that?!"
Not if inflation keeps going up.
Wishful thinking.
His name is Chip.. you’re so cheap or nvidia chip better than this Chip.. I know I’m so bad..
TNX creeping towards 5%. Rate cuts are in secure nd place behind QE
We need cuts because?? Oh the banks and wallstreet want them. Enjoy the inflation.
So, he has no idea whatsoever.
Inflation rising and we are already guaranteed 3 rate cuts this year? Ouch. Buy some gold folks
Its *
When the Dollars dies, the nation dies along with it.
Why are they cutting rates?
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