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US Treasury Yields to Edge Lower Over Time as Fed Shifts to Cuts, BofA’s Cabana Says
Treasury yields are primed to edge lower over time as the Federal Reserve keeps interest rates higher for longer before eventually cutting at a slower pace than markets expect, according to Bank of America Corp.’s Mark Cabana. “It’s a lot more difficult for us to envision 10s at 5% than it is 10s at 3%,” the head of US interest rates strategy said on Bloomberg Television on Wednesday. “You are not going to see as rapid of a yield decline, but we still think the yields will be moving lower in time as the Fed does indeed move to cuts, just cutting slower than the market anticipates.” Cabana said the ... (full story)