Analysts at Danske Bank see the 10Y US Treasury yield at 3.30% in a
Key Quotes:
“We expect the Fed to hike twice more this year with risk skewed towards a third hike. This was also the message the Fed sent at its March
“In line with our expectation, the Fed also signalled it is ready to start hitting the brakes soon, as the committee now signals it is ready to raise the Fed funds rate above the longer run dot of 2.875% (which is the Fed’s estimate of the natural rate of interest where monetary policy is neither expansionary nor contractionary). We expect three additional hikes next year and believe that it is possibly the hiking cycle will continue into 2020.”
“We still see a case for a Fed repricing in 2019/20, pushing 2Y yields higher. We continue to expect a flattening of the curve for the 2Y10Y on a 12M horizon. However, we still see the 10Y US