2024-06-08 08:30:00 ET
Summary
- If there are no cuts in 2024 (not our view), there is also little prospect for the 10yr yield to fall in a material manner.
- With real yields so low, inflation easing lower is not enough to justify lower yields.
- A key difference between the eurozone and the US is that the European Central Bank has delivered a rate cut, and by definition has peaked for this cycle.
Rate cutting is an important signal for bonds, telegraphing good things for returns
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For further details see:
Rates: Here's Why There Are Upside Risks Despite Cuts