Talk About Fed Rate Hike Seen Justified; it Doesn't Mean Fed Will Hike

Dow Jones07-21 13:14

0514 GMT - Speculation about Federal Reserve interest rate hikes is justified, DZ Bank analyst Christian Lenk says in a note. However, partly due to the latest inflation figures, which came in below analyst expectations in June, "this does not necessarily mean the Fed hikes," he says. Speculation regarding the key interest rates is also being reflected to some extent at the long end of the U.S. Treasury curve, albeit to a much lesser extent than at the front end, Lenk says. DZ Bank continues to expect volatility in 10-year U.S. Treasurys to remain moderate and expects the 10-year U.S. Treasury yield to drift lower to 4.40% on a 12-month horizon. The 10-year Treasury yield declines 0.4 basis points to 4.593%, according to Tradeweb. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

July 21, 2026 01:14 ET (05:14 GMT)

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