HALISTER1: Uncertainty Going to Keep UST Yields From Rising, Korapaty Says

Uncertainty Going to Keep UST Yields From Rising, Korapaty Says

(Bloomberg) -- U.S. Treasury yields are “going to be in this range, grind a little” amid the uncertainty surrounding President Trump’s fiscal policies, Credit Suisse strategist Praveen Korapaty said during Bloomberg TV interview.
  • “The longer time lines get extended, the harder it’s going to be for yields to rise”
    • Korapaty had thought some of the policy, like tax reform, was going to be seen in 2Q
  • Also, not expecting “that much of a change” in the FOMC statement Wednesday, as the Fed wants to “preserve the optionality of signaling a hike”
    • Said Fed’s not ready to raise rates because there’s “really no inflationary pressure yet,” so no urgency for it to move fast; also cited uncertainty as another reason Fed isn’t ready to move again
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Praveen Korapaty (Credit Suisse Group AG)

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