Temasek's Fullerton Says Traders Mispricing Fed Rate Hikes
- Fed likely to move twice this year, Ong says; market sees once
- Fullerton favors Indian and Indonesian bonds for high yields
JPM's Normand Says Fed No Longer Leading Global Pack
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U.S. bond yields are set to rise as the market is underestimating how many times the Federal Reserve will raise interest rates in the next 12 months, according to Fullerton Fund Management, the asset manager owned by Temasek Holdings Pte.
The U.S. central bank will probably raise its benchmark two more times in 2017, said Ong Guat Cheng, senior vice president for fixed income at Singapore-based Fullerton. Futures traders are predicting just one more increase by year-end.