BNP backs Goldman warning on bond market’s complacency
November 20, 2015 5:09 am
BNP Paribas SA has recommended traders to load up on securities in order to profit from escalating consumer prices in the United States.
The lender joins several banks, including Credit Agricole SA and Goldman Sachs Group Inc., that say inflation projections currently denoted by bond yields underpin the likelihood for consumer prices to rise at a rate closer to its long-term average.
BNP recommends investors bet the 10-year breakeven rate, the gap between yields on Treasury notes and inflation-connected debt of the maturity, will increase. Goldman made the same recommendations for next year.
It added inflation had troughed, saying investors are soothed by the promise of gradual interest rate hikes by the Bank of England and the Federal Reserve.
The material has been provided by InstaForex Company – www.instaforex.com
BNP Paribas SA has recommended traders to load up on securities in order to profit from escalating consumer prices in the United States.
The lender joins several banks, including Credit Agricole SA and Goldman Sachs Group Inc., that say inflation projections currently denoted by bond yields underpin the likelihood for consumer prices to rise at a rate closer to its long-term average.
BNP recommends investors bet the 10-year breakeven rate, the gap between yields on Treasury notes and inflation-connected debt of the maturity, will increase. Goldman made the same recommendations for next year.
It added inflation had troughed, saying investors are soothed by the promise of gradual interest rate hikes by the Bank of England and the Federal Reserve.
The material has been provided by InstaForex Company – www.instaforex.com
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