HSBC’s Major Says Yields Likely Peaked as Recession Risks Grow
- US officials well served by keeping financial conditions tight
- Fed officials may have market ‘where they want to,’ Major says
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Bond investors may already be pricing in the peak of the US rate cycle as concerns about a downturn mount, according to Steven Major, global head of fixed income research at HSBC Holdings Plc.
The Federal Reserve “is well served by keeping some hawkishness there,” the long-time bond bull told Bloomberg Television on Thursday. “Because if they appear that they’ve reached the peak, then financial conditions will loosen and the policy won’t work. So they need a couple more months of this.”