The bond market doesn't believe the Fed cut was one-and-done, says strategist

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The bond market doesn't believe the Fed cut was one-and-done, says strategist (via CNBCFuturesNow)

rise and respond to the less dovish Fed, but bond market participants are remaining somewhat resilient, " he said, referencing a chart of the 2-year U.S. Treasury yield.retracement of its Nov. 2016 levels, and it's clear to Ciana that "the bond market remains vigilant. They don't necessarily believe in the convergence story right now," he said.

Interestingly, the market that has accepted the Fed's less dovish positioning — made clear by Powell's unwillingness to guarantee further rate cuts and his stated reliance on economic data — is that of the"The market that's believing more in the convergence [of the U.S.

A carry trade is a strategy in which an investor borrows money when interest rates are low and invests in an asset with a higher return on investment. "The technical landscape here is the market's been buying dollars," Ciana said. "The market and the world want U.S. assets. They want the U.S. stock market, they want the U.S. dollar and they want U.S. bonds."

 

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