Molly Brooks, US rates strategist at TD Securities, is flagging asymmetric risks ahead of the Jackson Hole Economic Policy Symposium. Kevin Warsh will deliver his first major speech as Federal Reserve Chair on August 29, with this year’s theme focused on financial innovation and its implications for payments and policy. Brooks explains that dovish surprises from Warsh could trigger larger market moves than hawkish ones, given that many market participants are already positioned for a hawkish stance. Long-end Treasury yields continue climbing, driven by heavy issuance in 20-year and 30-year maturities and vulnerable investor positioning. TD Securities expects a prolonged period of higher policy rates as the curve adjusts.
Source: Read the original article
