JPMorgan Asset Says It’s Way Too Soon for Negative U.S. Rates
- Treasuries, Aussie bonds favored for yield, Mac Gorain says
- Dollar seen dropping against reserve currencies including yen
Photographer: Michael Nagle/Bloomberg
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Traders are getting ahead of themselves pricing in negative U.S. rates next year, according to JPMorgan Asset Management.
“Three, four years down the line if the economy is still in a very weak state, then perhaps the Federal Reserve could consider negative rates,” said Seamus Mac Gorain, head of global rates in London at the $1.7 trillion investment manager. “For now, they’re much more focused on the balance sheet, on their tools rather than on negative rates.”