Strategist: Fiscal Policy May Trigger Significant Repricing of U.S. Treasuries

SEB Research Chief Rate Strategist Jussi Hiljanen stated in a report that U.S. long-term Treasury yields may rise further, partly due to waning market confidence in U.S. policy. "Trust in U.S. policy is eroding, and considering the cost of forex hedging, valuations are unattractive, and investors are turning to European bonds, all indicating structural upward pressure on long-term U.S. yields. Long-term Treasury yields are expected to rise moderately, but fiscal policy could trigger a significant repricing of U.S. Treasuries." (Jin10)