Analyst Predicts Bond Market Cautious on U.S. Rate Cuts Despite Ceasefire

John Briggs, an analyst at Natixis, stated that even after the U.S.-Iran ceasefire agreement, the bond market may remain hesitant to price in significant U.S. rate cuts. According to Jin10, while the situation has notably eased, the impact of the conflict on inflation remains unclear. Briggs noted that a signal from the Federal Reserve indicating comfort with their policy and confidence in the progress of inflation transmission might be necessary. Despite anticipating two rate cuts this year and looking to buy on dips, he emphasized the importance of patience. He also projected that long-term bond yields would be higher than short-term yields.