Prospect of Fed Rate Hikes Points to Higher U.S. Rates

Dow Jones06-25 13:19

0519 GMT - Danske Bank's Federal Reserve call--interest-rate hikes in December 2026 and March 2027--implies that it expects U.S. rates to rise over the coming year, senior analyst Kirstine Kundby-Nielsen and chief analyst Jens Peter Sorensen say in a note. Danske expects the two- and 10-year U.S. dollar swap rates to rise to 4.15% and 4.50%, respectively, over the coming year. "Additionally, we expect the worsening of the U.S. debt burden to continue to exert upward pressure on the long end of the curve," they say. The risk is that the Fed delivers rate hikes more quickly and to a greater extent than Danske analysts currently have priced in their forecast, they say. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

June 25, 2026 01:19 ET (05:19 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment