Senior Analyst at Danske Bank Piet Christiansen gives his view on the upcoming FOMC meeting and yields of the US 10-year reference.
“The 10Y US Treasury yield has been caught in a tight trading range ahead of the FOMC meeting today. Hence, the continued rise in US inflation as we saw yesterday did not change the direction/outlook for the US Treasury yields”.
“Given that the rate hike is a done deal, we need to see a significant change in the communication from the Federal Reserve in order to get 10-year yields rising. This is not on the cards and thus we expect that 10Y US treasury yields will continue to trade around 3%”.
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