Fed June Hike May Trigger Renewed Policy-Mistake Worries: BofAML
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
People
Ralf Preusser (Merrill Lynch International)
Shyam Rajan (Bank of America Corp)
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UUID: 7947283
(Bloomberg) -- Rates market is at risk of flipping to trading the “policy mistake theme,” BofAML strategists led by Ralf Preusser and Shyam Rajan say in note.
- Real yields and breakevens have declined since mid-March as money market curves have flattened; at same time, odds of a June Fed rate hike have increased
- At root of repricing of rates market appears to be notion that 2017 may be the last chance for Fed to remove accommodation
- An actual hike might, therefore, “trigger renewed policy- mistake concerns”
- “The protection offered by betting against the June hike may be somewhat academic”
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
People
Ralf Preusser (Merrill Lynch International)
Shyam Rajan (Bank of America Corp)
To de-activate this alert, click here
To modify this alert, click here
UUID: 7947283