U.S. bank strategists recommend shorting the 2-year U.S. Treasury bond, indicating the Federal Reserve may shift to a hawkish stance

The U.S. Bank’s interest rate strategist recommends shorting U.S. 2-year government bonds, citing the reason that “with Iran’s ceasefire situation fragile, there are upside risks to oil prices and inflation,” while U.S. economic activity data remains resilient, and the Federal Reserve may shift to a hawkish stance. Led by strategist Mark Cabana, they suggest establishing a short position at 3.87%, targeting 4.10%, with a stop-loss set at 3.70%. They wrote, “The Federal Open Market Committee meeting in April was hawkish,” and the Fed’s risk balance is shifting from downward labor market risks to upward inflation risks. (Sina Finance)

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