Datta: Fed Uncertainty Akin to Watching a Bad Soap Opera
Treasury two-year notes are the cheapest relative to 30-year bonds since the start of 2008 as hawkish comments from Federal Reserve officials spur speculation they will increase interest rates this year. The yield on the shorter-maturity debt, which is more sensitive to the outlook for monetary policy than that on longer-dated securities, is poised for its highest close in two months. The odds the Fed will raise its benchmark this year have risen to 54 percent, from 47 percent a week ago, after Vice Chairman Stanley Fischer joined the presidents of the New York and San Francisco branches in signaling a move in 2016 was still under consideration. Fed Chair Janet Yellen speaks Friday at an annual symposium in Jackson Hole, Wyoming. Aon Hewitt Head of Global Asset Allocation Tapan Datta discusses with Bloomberg's Anna Edwards on "Countdown."