Capital Economics: US Treasuries May Face Challenges for the Remainder of the Year

According to a report by Jinse Finance, Thomas Mathews, an analyst at Capital Economics, stated that although U.S. Treasury bonds have performed strongly recently, they are expected to face challenges for the remainder of the year. "The weeks-long rally in U.S. Treasuries appears to have paused," Mathews noted. Comments made by Federal Reserve Chair Jerome Powell at the conference in Sintra, Portugal, seem to be one factor behind the pause. Powell indicated that as long as the economy remains stable, there is no rush to cut interest rates. He said, "For our part, we doubt the Fed will have the evidence needed to cut rates before next year, and we also doubt it will yield to political pressure." Capital Economics expects the Federal Reserve will not cut rates before next year.