“Not a chance” of materially higher rates

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Livewire Markets

After reaching as low as 1.36% in July, the US 10-year Treasury yield has climbed steadily to 1.69%, ushering in market speculation that after falling for 35 years, bond yields have seen an inflection point. Jeff Gundlach from LA-based asset management firm, DoubleLine Capital, was widely quoted as saying “interest rates have bottomed ... sell everything, nothing here looks good.” Livewire reached out for a view of the local rates markets. Contrasting with many other managers, Charlie Jamieson, Executive Director at Jamieson Coote Bonds, thinks we’re simply seeing a healthy correction. "It's important to slow down a little bit and think, are we really going into a period where central banks will materially hike interest rates? Absolutely not. Not a chance!" In the full video below, he outlines his expectations for the rates markets, and explains why the direction of US rates matters greatly to Australian equity investors.

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