Malvey, Bank of New York Mellon’s chief global markets strategist, is more sanguine but acknowledges “the possibility of unintended consequences certainly can not be ruled out.”
Goldman Sachs Group Inc. is telling investors they’re woefully unprepared for higher U.S. interest rates. The New York-based firm says there’s a 35 percent chance the Fed will raise rates next month -- more than double what the bond market has priced in. The disparity persists despite the fact that Fed Chair Janet Yellen said on June 6 the U.S. economy is in good shape and the central bank will raise rates gradually. The Fed’s next meeting is set for June 14-15.
Whatever the case may be, one thing is clear: there’s never been a bond market quite like this one.