“Don’t be surprised if the Fed’s hand is forced” and they end up doing 100 basis points of tightening, said Nisha Patel, director and portfolio manager of fixed income at Parametric. “The idea that inflation had peaked has been dispelled, and now the likelihood of that soft landing for the economy has only decreased. Expect long-bond yields likely to come down leading up to the September meeting as recessionary risk increases.”
--With assistance from Alexandra Harris, Liz Capo McCormick, Michael MacKenzie and Natalia Kniazhevich.
This article was provided by Bloomberg News.