July CPI and 10yr Auction Preview: The MUFG Global Markets Podcast

George Goncalves, MUFG Head of U.S. Macro Strategy, walks us through what looks like a potential double-bottom in long-term rates and a turn higher from here, where markets will then focus on how the Fed delivers its taper plans.

 

However, we have seen many false dawns in the rise in rates, and historically, the end of summer has been met with seasonally strong supporting factors for long-term rates. George’s view is that if the seasonals get negated this time that could setup rates to move higher into the end of Q3. Overall, it’s a potential critical inflection point that we could be going through.

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