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From Hedge Funds to SocGen, Doubts Remain on More Aggressive Fed

  • SocGen, BlackRock find value in short-term Treasuries
  • Hedge funds reduce short position in two-year Treasuries
Jerome Powell
Jerome PowellPhotographer: Andrew Harrer/Bloomberg

The Federal Reserve may be signaling an increasing chance of four interest-rate hikes this year, but plenty of doubters remain.

Societe Generale SA and BlackRock Inc. are finding value in short-term Treasuries even as the chances grew on four rate rises this year following Fed Chairman Jerome Powell’s congressional testimony last week. SocGen’s New York-based head of U.S. rates strategy said that three hikes make sense given the outlook for inflation.