German Central Cooperative Bank Analyst Says Fed Rate-Hike Speculation Is Reasonable

Christian Lenk of German Central Cooperative Bank said speculation about a Federal Reserve rate hike is reasonable. According to Jin10, he said this does not necessarily mean the Fed will raise rates, citing the latest inflation data, which came in below analysts’ expectations in June. Lenk said speculation about the key policy rate is also reflected to some extent in the long end of the U.S. Treasury yield curve, though far less than in the short end. German Central Cooperative Bank also expects 10-year U.S. Treasury volatility to remain moderate and sees the 10-year Treasury yield falling back to 4.40% within 12 months.