Bloomberg Surveillance · Tuesday, June 30, 2026
Bob Michael of JP Morgan Investment Management assesses the US bond market, stating it looks fairly valued with the ten-year US Treasury expected to trade between 4.125% and 4.5%. He notes that current yields price in one to two Federal Reserve rate hikes, with 4.625% accommodating two hikes and 4.125% potentially insufficient for even one hike.
“The US bond market looks fair value. We expect a ten year US treasury to trade between four.”
“We're pricing in one possibly too FED rate hikes. I think four and five eighths covers you for two hikes. I think when you get down to four and in eighth probably you don't have enough yield in the market to cover you for a rate hiker two. So we're saying the bond market looks pretty good right now.”