A rate hike will be a 'bear flattener' say bond managers
Bond managers expect the yield curve for US Treasuries to flatten, meaning the long end won’t react much to a Fed rate hike.
With the Federal Reserve board expected to increase interest rates for the first time since 2006 later this year, bond fund managers are preparing for short-term yields to rise further than those on the long end of the US Treasury yield curve.
“Our outlook is for a bear flattener,” said Kevin Dachille, institutional portfolio manager at Eaton Vance Investment Managers in Boston.
Steve Meier, CIO for global fixed income, commodities and currency at State Street Global Advisors, u…
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