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Major bank drops bombshell on Fed interest-rate bets
Key takeaways
- Long-dated Treasury yields pushed sharply higher, with bond traders upping the risk that the central bank may need to tighten monetary policyrather than ease, as was expected at the start of the year.
- One major bank dropped a strong warning in response to the bond market’s jitters.
- Rates Strategy Guneet Dhingra wrote in an email note to TheStreet that, in the end, their view is the Federal Open Market Committee is likely “to strongly prefer” a long-term hold stance to rate hikes in 2026.
Major bank drops bombshell on Fed interest-rate bets Mary Helen Gillespie Mon, May 18, 2026 at 12:07 AM GMT+7 5 min read BNP.PA After an especially bruising week of hot back-to-back inflation headlines, increasing uncertainties about the end of the Iran war’s energy shocks, and a flaccid state visit to China, the bond market’s outlook for a Fed interest-rate hike this year flexed.
Long-dated Treasury yields pushed sharply higher, with bond traders upping the risk that the central bank may need to tighten monetary policyrather than ease, as was expected at the start of the year.
One major bank dropped a strong warning in response to the bond market’s jitters.
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