Market Remains Rates-Driven as High U.S. Treasury Yields Dominate
Dow Jones10-14
0527 GMT - This year remains a rates-driven market, with sharply higher U.S. Treasury yields across the curve dominating stories across fixed income, says BondBloxx Investment Management's JoAnne Bianco in a note. While current Treasury yields above 5% may feel high, history suggests the post-Global Financial Crisis era of unusually low rates was the anomaly, the senior investment strategist says. Factors driving yields higher are resilient economic growth, including the upward-revised second-quarter GDP, high oil prices and growing Treasury supply, she says. "Investors continue to focus on large federal deficits and rising Treasury issuance, contributing to the view that term premium needs to be higher," Bianco says.
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