As regulators push to transition away from Libor, sales of Treasuries linked to the successor rate could boost the new benchmark’s credibility and expand nascent markets for related debt and derivatives.
Longer-dated Treasury yields have climbed as markets consider whether economic growth and inflation expectations might accelerate more rapidly. We believe inflation pressures will remain in check and bond yields will be range-bound.
How can investors navigate volatility arising from late-cycle fiscal stimulus?
Untethered to traditional bond benchmarks, unconstrained bond strategies can respond to current changing market conditions in various ways.