Do rates always overshoot before bottoms are formed?: The MUFG Global Markets Podcast

Given the recent price action in the bond markets over the last 2 weeks, it has almost felt like it’s been 2 months since we last heard from MUFG Head of U.S. Macro Strategy, George Goncalves.

George has been watching this market from the sidelines after having gone neutral duration in early July, choosing not to chase the rally but instead see how far it could go before reassessing his views. U.S. 10yr rates then went on to go beyond George’s bottom of his range (1.25%, the low he had penciled in for the 3rd quarter) and then snapped back in the last couple trading sessions. George views that as a healthy start in hopefully what will turn out to be a consolidation, the kind that will give the Fed a chance to taper.

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