“We expect volatility to stay escalated as the market digests those concerns but believe 10-years in the US will remain around 4% to 4.25%, with 4.5% seeming a good entry point to extend duration.” — Alexandre Morin
Key Takeaways:
- That sinking feeling the US Fed is intent on getting a solid handle on inflation hit the markets again in October, punctuated by another 40-basis-point spike in 10-year Treasuries
- We expect volatility to stay escalated as the market digests those concerns but believe 10-years in the US will remain around 4% to 4.25%, with 4.5% seeming a good entry point to extend duration.
- We continue to be flexible in our positioning, with a bias towards slightly longer duration than our benchmark.
Alexandre Morin, CFA
Senior Director, Portfolio Manager, Fixed Income, iAIM
