JPMorgan Says Sell Two-Year US Bonds as Traders Wait for CPI

JPMorgan Chase & Co. strategists recommended selling two-year US Treasuries as a “tactical” trade, citing a resilient growth outlook that will make it hard for the Federal Reserve to cut interest rates aggressively.

“The underpinnings of the economy are strong and it will be challenging for nominee Kevin Warsh to bend the FOMC to his will once he is confirmed and takes over as chair,” strategists led by Jay Barry wrote in a note, referring to the Federal Open Market Committee.