JPMorgan Asset Sees Treasury Rout Worsening on Inflation Risks
- Treasury yields could reach 5% if Fed ramps up rate hikes
- Yen should continue falling on rate differentials: Stealey
The U.S. Treasury Department in Washington, DC.
Photographer: Stefani Reynolds/Bloomberg
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The worst Treasury rout in decades has room to run as the Federal Reserve unreservedly makes fighting inflation its top priority, according to JPMorgan Asset Management.
While yields in the world’s biggest bond market have skyrocketed this year along with US interest rates, they’ve yet to reach their peak and fully price in the risks of an economic downturn, said Iain Stealey, international chief investment officer for fixed income at the $2.5 trillion fund giant in London. He said 4.5% on 10-year Treasuries was a “good” entry level to buy.