DB - Wall Street Left In Awe As Government Debt Surge Outruns 2024 Forecast | Benzinga
In a surprising turn of events, the surge in government debt has outpaced Wall Street’s expectations for 2024, perplexing analysts and investors alike.
What Happened: As per a recent Financial Times report on Thursday, a rally in government bonds was expected in the upcoming year due to a potential decrease in interest rates. However, these predictions have been realized a year in advance due to larger-than-expected dips in inflation and a revised outlook from the U.S. Federal Reserve.
Yields on 10-year U.S. Treasuries have seen a near one percent fall since the end of October, spurred by growing expectations that the Fed will start rate cuts as early as March. Meghan Swiber, a rates strategist at Bank of America attributes this swift rate shift to the Fed’s rapid pivot.
"It just speaks to how volatile the market has been — and how very conditional it is on our understanding of how the Fed will move,” she said.
Post ...