Treasury Yields Expected to Remain Elevated Beyond Fed Meeting
Dow Jones
5 hours ago
1231 ET - Treasury yields decline from multi-year highs, but elevated borrowing costs could be a new normal as a combination of drivers undermine demand for government debt. "I think a major factor is, basically, a big demand for capital from the AI buildout," Societe Generale's Jan Groen says. "And on top of that, we have a lot of demand from the federal government [and] a lot of uncertainty about the Fed, whether they actually will start hiking." Groen expects the Fed to start hiking this week and repeat every other meeting through March. Fiscal worries, however, are here to stay. "There is a real risk that fiscal dominance will be an issue for monetary policy going forward," he says.
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