(Bloomberg) — Across Wall Street, there’s growing relief that the Federal Reserve — at long last — may be done raising interest rates. But that doesn’t mean turbulence in the bond market will soon become a thing of the past.
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Investors anticipate that US Treasuries will continue to be whipsawed by heightened volatility as economic uncertainty threatens to alter the central bank’s path or keep rates pinned higher for far longer than traders currently expect.
Already, some Fed officials are underscoring that there may still be more work to do as inflation continues to hold above their 2% target despite the most aggressive monetary policy tightening in four decades. At Barclays, strategists have advised clients to sell two-year Treasuries on anticipation that rates will remain elevated next year, bucking broader speculation that the Fed will initiate a…
