Close Menu
Fund Focus News
    Facebook X (Twitter) Instagram
    Trending
    • Top Hybrid Mutual Funds with Highest SIP Returns: Rs 20,000 monthly investment in No. 1 fund has grown to Rs 20.68 in just 5 years
    • NFO ongoing: Balancing growth and stability with Bajaj Finserv Equity Savings Fund
    • Clark posts over P1B in investments from Jan-July
    • You Can Now Use Your HSA/FSA Funds To Shop For Skincare At Dermstore
    • ETFs to Buy as Microsoft Nears $4T Mark Post Blowout Q4 Earnings
    • Get SIX bottles of wine for $100 off with free shipping: Savor every sip of the world’s best wines delivered right to your doorstep
    • Ethereum ETFs, Treasury Companies Now Hold Over $32B In ETH: Here’s What’s Driving The Frenzy
    • Active ETFs Are a Top Choice for Model Portfolio Providers
    Facebook X (Twitter) Instagram
    Fund Focus News
    • Home
    • Bonds
    • ETFs
    • Funds
    • Investments
    • Mutual Funds
    • Property Investments
    • SIP
    Fund Focus News
    Home»Bonds»US bond rally overdone but Fed should have cut rates in July, BlackRock manager says
    Bonds

    US bond rally overdone but Fed should have cut rates in July, BlackRock manager says

    August 5, 2024


    By Davide Barbuscia

    NEW YORK (Reuters) – A recent U.S. Treasuries rally, fueled by expectations of significantly lower interest rates, is overdone as the economy’s resilience may make it unnecessary for the central bank to lower borrowing costs by as much as the market bets, a BlackRock portfolio manager said.

    However, the Fed should have started lowering rates last month to gradually shift toward easier monetary policy, he added.

    U.S. Treasury yields, which move inversely to prices, have declined sharply after weak manufacturing data and employment data released last week sparked recession fears and a sharp repricing of bets on monetary policy for the rest of this year.

    The rally has made Treasury valuations less attractive, said David Rogal, portfolio manager of BlackRock’s Fundamental Fixed Income Group, in an interview. “We have definitely been more favorable on bonds here but it’s hard to be too constructive at these valuations.”

    The rally lost some momentum on Monday, but the two-year U.S. Treasury yield remained about 50 basis points lower than a week earlier, and the benchmark 10-year yield has shed 40 basis points over the past week. On Monday, investors were betting on about 114 basis points in rate cuts for 2024, nearly double the easing expected last week.

    The Fed is still expected to start easing at its next meeting in September.

    Further Treasury price advances would reflect a rapid weakening of economic growth. However, if the Fed lowers interest rates, Rogal said, he would expect a so-called economic soft landing, a scenario in which inflation decreases without a major slowdown.

    Still, he said the central bank should have started cutting rates by 25 basis points at the end of its meeting last week, when it kept policy rates unchanged at 5.25%-5.5%.

    “Some of what the markets are reacting to is a Fed that now looks a little bit more behind the curve,” said Rogal. This increases the chances of a bigger, 50 basis point cut in September that could seem “a little panicky.”

    (Reporting by Davide Barbuscia; Editing by Richard Chang)



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email

    Related Posts

    Japanese bonds log weekly foreign outflows on BOJ policy caution

    July 30, 2025

    What Are Bonds? A Beginner’s Guide (2025)

    July 30, 2025

    Pay contractors with bonds to curb inflation – Joe Jackson advises government

    July 30, 2025
    Leave A Reply Cancel Reply

    Top Posts

    Top Hybrid Mutual Funds with Highest SIP Returns: Rs 20,000 monthly investment in No. 1 fund has grown to Rs 20.68 in just 5 years

    July 31, 2025

    Qu’est-ce qu’un green bond ?

    December 7, 2017

    les cat’ bonds deviennent incontournables

    September 5, 2018

    ETF : définition et intérêt des trackers

    May 15, 2019
    Don't Miss
    Mutual Funds

    Top Hybrid Mutual Funds with Highest SIP Returns: Rs 20,000 monthly investment in No. 1 fund has grown to Rs 20.68 in just 5 years

    July 31, 2025

    Investors can put their money into the equity market using hybrid mutual funds, as these…

    NFO ongoing: Balancing growth and stability with Bajaj Finserv Equity Savings Fund

    July 31, 2025

    Clark posts over P1B in investments from Jan-July

    July 31, 2025

    You Can Now Use Your HSA/FSA Funds To Shop For Skincare At Dermstore

    July 31, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    EDITOR'S PICK

    Could Investing $1,000 in Apple Make You a Millionaire?

    October 27, 2024

    Idaho candidates may now use campaign funds for child care

    October 25, 2024

    Real Estate Market Predictions 2025: What to Expect

    October 16, 2024
    Our Picks

    Top Hybrid Mutual Funds with Highest SIP Returns: Rs 20,000 monthly investment in No. 1 fund has grown to Rs 20.68 in just 5 years

    July 31, 2025

    NFO ongoing: Balancing growth and stability with Bajaj Finserv Equity Savings Fund

    July 31, 2025

    Clark posts over P1B in investments from Jan-July

    July 31, 2025
    Most Popular

    ₹10,000 monthly SIP in this debt mutual fund has grown to over ₹70 lakh in 23 years

    June 13, 2025

    ₹1 lakh investment in these 2 ELSS mutual funds at launch would have grown to over ₹5 lakh. Check details

    April 25, 2025

    ZIG, BUZZ, NANC, and KRUZ

    October 11, 2024
    © 2025 Fund Focus News
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.