Invesco argued on Tuesday that the Federal Reserve will err on the side of hawkishness during this week’s Jackson Hole Symposium on Friday as U.S. Treasury yields continue to push higher.
Kristina Hooper, Global Market Strategist at Invesco said: “I expect Fed policymakers to err on the side of hawkishness at their symposium in Jackson Hole later this week.”
The reasoning behind the more hawkish call is because of the Federal Reserves’ need to prevent financial conditions from easing and be able to avoid any more rate hikes, Invesco noted.
Hooper also added: “It seems that the recent rise in Treasury yields reflects improved growth expectations, as fears about recession have subsided – and as inflation data continues to show improvement and survey-based inflation expectations have fallen.”
On Tuesday, U.S. Treasury yields were mixed after the U.S. 10-Year Treasury yield (US10Y) topped record trading highs not seen since November of 2007 on Monday and the U.S. 2-Year Treasury yield (US2Y) jumped back above 5.00%.
Moreover, see additional information on Treasury yields here.
Heading into the close and the 2Y gained 4 basis points to 5.03% while the longer end US10Y declined by 1 basis point to 4.33%
Outlined below are a group of U.S. Treasury bond-based exchange traded funds across multiple maturity dates that investors can use as a reference point.
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