Schroders Is Neutral on Treasury Curve, Seeks More Clarity from Fed

Live updates

1. 22d ago

   Treasury Yields Drop as Markets Await Warsh Jackson Hole Speech

   Treasury yields have fallen while investors anticipate a keynote address from Warsh at the Jackson Hole symposium. Market participants are seeking clearer guidance to prevent a deeper selloff in long-dated US bonds. This caution comes as the bond market signals potential trouble and the economy faces risks associated with the end of low borrowing costs. While US yields dip, Eurozone bond yields also opened lower as global markets wait for the symposium to provide direction on monetary policy.

   Why it matters

   The transition away from low borrowing costs creates systemic risk for an economy accustomed to cheap credit. Clear communication from central bank leadership is required to stabilize long-term bond valuations. The Jackson Hole symposium serves as a primary venue for these policy signals.

   What is confirmed

   • Treasury yields have fallen as investors prepare for the Jackson Hole keynote.
   • Eurozone bond yields opened lower ahead of the Jackson Hole symposium.

   Still unconfirmed

   • The exit from low borrowing costs could pose risks to the economy.

   What to watch next

   • Warsh's keynote address at the Jackson Hole symposium
   • Future movements in long-dated US bond prices
   Sources used for this update (5)

   1. NPR — The bond market is signaling trouble ahead. This is why you should pay attention
   2. The New York Times — The Economy Got Used to Low Borrowing Costs. Their Exit Could Pose Risks.
   3. Bloomberg.com — US Long Bonds Risk Deeper Selloff Without Clear Warsh Guidance
   4. CNBC — Treasury yields fall as investors brace for Warsh’s Jackson Hole keynote amid bond fears
   5. WSJ — Eurozone Bond Yields Open Lower, Markets Await Jackson Hole Symposium
   confidence 80%