Treasuries Lure Buyers as Juicy Yields Offset Powell Warning
- Western Asset, JPMorgan are bullish on Treasuries after Powell
- Investors still need ‘clearer trajectory for rates’: Schroders
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Beaten-down US Treasuries are proving irresistible to some investors even after Federal Reserve Chair Jerome Powell said he’s ready to raise interest rates again to choke off inflation.
Western Asset Management says bonds are set to outperform due to attractive yields, while JPMorgan Chase & Co. is keeping its bullish bets on fixed income despite Powell’s warning at Jackson Hole Friday. Even fresh Fed hikes won’t deliver bond losses steep enough to outweigh the income from the highest yields since 2007, the bulls argue.