UBT - Rates Spark: We See U.S. Payrolls, But We Also See Pressures For Higher Longer Rates
2025-08-04 16:36:00 ET
By Padhraic Garvey, CFA & Michiel Tukker
A steeper US curve is the path of least resistance, or at least should be
The US 10yr yield at 4.2% is pretty much where it was on the eve of 'Liberation Day' (2 April). From there it managed to snap down to 3.85% as a one-to-two-day reaction to risk-off, and heightened recession risks by implication. It then turned tail and shot up to 4.6%. Fast forward to the last few weeks, and the tariffs are absolutely 'back on', but with far less effect this time around. The worry ahead is upside to inflation (even if technically more a price rise than an inflation rise)....
Rates Spark: We See U.S. Payrolls, But We Also See Pressures For Higher Longer Rates