Concerns over U.S. Fiscal Outlook Could Keep Long-End Treasury Yields Elevated
Dow Jones10-12 18:21
1021 GMT - U.S. long-end Treasury yields could remain supported near multidecade highs amid persistent concerns over the U.S. fiscal outlook, says VT Markets Dubai's Mahmoud Mashal in a note. Persistent inflation could lift front-end yields, while a softer reading could push tightening expectations further out and challenge the dollar's recent strength, the senior market strategist says ahead of the September CPI report on Wednesday. "Any renewed rise in oil prices could revive inflation concerns and place upward pressure on Treasury yields," he says. The U.S. Treasury market is closed on Monday due to Columbus Day. Money markets price an 18% probability of a Federal Reserve rate hike later this month, according to LSEG.
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