What Fed Increase? Top Treasuries Forecaster Is Bullish for 2016
- Janney's LeBas sees 10-year yield at end of next year at 2.22%
- Strategist proving most accurate from December 2014 survey
Janet Yellen Tames the Bond Vigilantes
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The most-accurate forecaster of the $13.1 trillion Treasuries market this year says the Federal Reserve is too optimistic in its plan for additional interest-rate increases after Wednesday’s expected liftoff, and that’s good news for bonds.
Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott LLC, an investment adviser in Philadelphia, expects 10-year yields to end 2016 at 2.22 percent, not far from their 2.27 percent level at 7:44 a.m. in New York Wednesday. He joins the slim ranks of contrarian voices -- the median forecast in a Bloomberg survey is 2.78 percent.