HSBC’s Major Says Inflation Wrong-Footed Wall Street on Yields
- Inflation has been key driver to errors in past year, he says
- Big forecast mistake, bond beating signals worst may be over
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The worst may be over for US bonds after a breakneck surge in yields.
That’s the take from long-time bond bull Steven Major of HSBC Holdings Plc, who says investors should ignore consensus forecasts for higher rates, given history shows their track record hasn’t been good. Indeed, investors and analysts alike have been wrong-footed by the recent rally in bonds. With the inflation trajectory remaining uncertain, other metrics like degree of losses and forecast history may be of more value now, he adds.