Nichola Hunter, chief executive officer at trading venue LiquidityEdge, discussed the bond market, her outlook for the Federal Reserve’s monetary policy, and the flattening yield curve in government debt on “Bloomberg Markets: European Open.”
Related: Mulling Timely Municipal Bond ETFs
Points discussed in the interview:
- After years of stagnant growth, the first rake hikes by the Federal Reserve are finally sparking yields in the bond markets
- There are opposing opinions in the bond markets–a two-way market of whether the Federal Reserve has topped out on interest rates and if rate spikes will continue
- The U.S. and Europe economy are in different places right now as evidenced between the variations in the Treasury and bund yields
- GDP growth and Inflationary expectations will allow the Federal Reserve to continue on its path to raise interest rates
- The Federal Reserve raising rates is what is affecting the market the most compared to reducing its balance sheet, which is flattening the yield curve
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