Institutions: With the ceasefire agreement bringing relief, the Federal Reserve is expected to cut interest rates this year

Golden Ten Data, April 8 — According to Briggs from Natixis, even after a ceasefire agreement between the US and Iran, the bond market may still be reluctant to fully price in excessive Fed rate cut expectations. Although tensions have eased significantly, the impact of this war on inflation remains uncertain. Briggs stated: "In addition, we may need the Federal Reserve to send some signals showing that they are reassured and confident about the progress of this inflation transmission." "Therefore, while we still expect two rate cuts this year and will look to buy the dips, we will remain patient." Briggs expects long-term yields to be higher than the short end. He suggests "gradually building up steepening strategy positions."