If You Liked Bonds Pre-Fed, You'll Love Them Even More Now
- Fed concern over global economy bolsters lower for longer view
- Bond market calls for slow-moving central bank validated
A press printing one dollar bills at the Bureau of Engraving and Printing in Washington, DC.
Photographer: Mark Wilson/Getty ImagesThis article is for subscribers only.
Being bullish on the U.S. bond market just got a lot easier.
Not only did the Federal Reserve hold the line on interest rates last week, central bank officials yet again cut their forecasts for how high borrowing costs need to rise over coming years. For the first time, they also explicitly cited the rising risks of international turmoil such as China’s slowdown in their decision to keep the benchmark rate near zero.