The institution: Expectations of rate cuts are excessive, and US bonds have entered the overbought zone.
ChainCatcher news, Mark Dowding, Chief Investment Officer of BlueBay, an asset management company under the Royal Bank of Canada, stated that the recent rise in US Treasuries appears to be somewhat excessive, and the market may have already digested the impact of the Federal Reserve's rate cuts. Given that there will be an 80 basis point rate cut by 2024, we believe this is an overshooting range, and fair pricing is for one to two rate cuts. Given this view, we are inclined to take a contrarian position on the recent trend in US Treasury yields.
