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Published on Oct 17, 2016
The
yield on the 10-year Treasury bond may be creeping higher, but it will
be tough for it to move too far above 2% even if the Fed hikes rates in
December, said Ed Al-Hussainy, a global rates and currency strategist at
Columbia Threadneedle. Al-Hussainy said a weaker pound is the key
adjustment mechanism for the U.K. as it leaves the European Union. This
will help the U.K. economy on the margins, but overall the Brexit will
weigh on it over the next five years. He added that the Yen should
weaken because the Bank of Japan can do more to stimulate the economy.
Similarly, he Euro should move marginally weaker as the ECB increases
its quantitative easing program in coming weeks.
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