23 Mar 2015
Fed may start hiking rates from September – Danske
FXStreet (Barcelona) - Analysts at Danske Bank, forecast the Fed rate hikes to begin from September, and further suggest remaining short on 2-10year US yields.
Key Quotes
“Market pricing of Fed funds rate hikes over the coming four years is extremely subdued. We see a significant potential for a re-pricing of this pace over the coming six months.”
“We expect the first rate hike from the Fed to come in September this year. Looking at past hiking cycles, rates across the curve tend to move significantly higher three-four months ahead of the first hike.”
“We recommend investors to be outright short across the 2-10 year segment of the US curve despite a significant negative roll-down.”
“For companies with USDbased debt we recommend having a high hedge ratio on liabilities.”
Key Quotes
“Market pricing of Fed funds rate hikes over the coming four years is extremely subdued. We see a significant potential for a re-pricing of this pace over the coming six months.”
“We expect the first rate hike from the Fed to come in September this year. Looking at past hiking cycles, rates across the curve tend to move significantly higher three-four months ahead of the first hike.”
“We recommend investors to be outright short across the 2-10 year segment of the US curve despite a significant negative roll-down.”
“For companies with USDbased debt we recommend having a high hedge ratio on liabilities.”