Latest news with #fixedIncome
Yahoo
2 days ago
- Business
- Yahoo
US equities don't need a Fed cut, but the bond market might
The Federal Reserve held interest rates higher at its June meeting on Wednesday. Sage Advisory managing partner Thomas Urano joins Market Domination to discuss how the Fed's rate decision impacts the fixed income market. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. You mentioned how the Fed does seem to be on hold. We all heard J. Powell this week, and certainly it does not look like a Fed that's in any rush to cut. I mean, you listen to Powell, and he clearly wants to see how tariff inflation plays out. Does the market need a cut, Thomas, to move higher? I don't think the market needs a cut. Um, I mean, you know, the bond market may need a cut to move higher from here. Um, but I'm not exactly sure the equity market needs a cut. You know, the economy is doing okay. I think, you know, the the takeaways from the meeting was that Fed expects economy to rebound strongly in Q2, but then kind of come with a slightly below average growth rate. You know, mid-ones, 14, 15 range for 2025. So that's not a really strong growth picture, so I'm not sure that really supports rising multiples and rising earnings expectations in the equity market. Um, but on the other hand, slow growth, um, I think it does set the bond market up for considering at some point in 2026, the Fed does get the ball moving on pushing policy rates lower. Um, but that I think is all predicated on this idea that inflation, or tariff-driven inflation, um, remains kind of moderate or low. And, you know, the idea that transitory inflation, you know, that's changed to anticipatory inflation, meaning, I think Powell suggested the Fed expects tariffs to cause what he described as meaningful increase in inflation, although we haven't seen that yet, right? We've realized inflation over the first half of 2025 has been quite low. So, uh, we haven't seen any pressure on that front yet. Um, I think all of that is what leaves the Fed just kind of in this wait-and-see mode. Thomas, does that leave us all, taking all that together and then just looking at something simple like the 10-year, right at 437 right now, is it just too high? Are you expecting that to come down at some point based on all those things you were just laying out there? Um, I, you know, I think the 10-year note at somewhere between four, four and a half can, you can hang around that zone for a longer period of time. I think what's more interesting is the four, is the two-year note hanging around 4%, right? And ultimately, if the Fed is going to engage in a policy shift lower, meaning target range, I think, you know, at the dot plots somewhere around three and a half, maybe three and a quarter, um, that sets the stage for a bit of a rally in the front of the curve, which would then ultimately kind of provide some slope, positive slope back to the yield curve, twos, tens, get a bit more slope in there, um, which I think is a healthier picture. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
6 days ago
- Business
- Bloomberg
JPM's Berro Sees Yields as ‘Range-Bound Around Here'
Kelsey Berro, fixed income portfolio manager at JPMorgan Asset Management, offers her outlook for yields as she weighs the market shock of the Israel-Iran attacks and her expectation for the Federal Reserve to 'keep everything the same' at this week's meeting. (Source: Bloomberg)
ABC News
6 days ago
- Business
- ABC News
US dollar's safe haven status in question
Ellerston Capital head of fixed income and multi asset, Vimal Gor joins The Business to explain what's behind the weakening US dollar, and why some are questioning its status as a safe haven currency.
Zawya
10-06-2025
- Business
- Zawya
UAE's Emirates NBD issues mandate for kangaroo bond
Emirates NBD, the UAE's second largest bank by total assets, has issued a mandate for a potential 10-year Australian dollar benchmark sized fixed kangaroo bond. The lender is taking Indications of Interest (IoIs) at IPTs of asset swaps +195 bps area. The expected issue rating is A1 / A+ (Moody's / Fitch), in line with the bank's rating. The senior unsecured debt issuance has an indicative coupon on 6.00%, with a yield of 6.05%. Emirates NBD Capital, Mizuho, and Nomura have been appointed joint lead managers and joint bookrunners. The issuance comes under ENBD's AUS $4 billion Kangaroo Debt Issuance Programme and will be priced on June 11. (Writing by Bindu Rai, editing by Seban Scaria)
Bloomberg
09-06-2025
- Business
- Bloomberg
BlackRock: European Fixed Income 'Good Place' to Be Now
BlackRock's EMEA iShares fixed income strategy head Vasiliki Pachatouridi discusses investors' sentiment for US bonds. "It's hard to imagine portfolios without US assets," Pachatouridi tells Bloomberg Television. "However, I am seeing particularly here in Europe, investors looking to diversify income, particularly with European fixed income." She also discusses what to expect from the Federal Reserve in the coming weeks and months. (Source: Bloomberg)
