He explained, “We like the return potential of longer-dated US Treasuries,” supported by the current US labour market data.
McIntyre also emphasized the importance of monitoring jobless claims, stating, “If it comes down to only one economic data point, initial/continuing jobless claims in the US would be the series that warrants watching,” reflecting the labour market’s role in the Federal Reserve’s decision-making.
McIntyre likened longer maturity bonds to “a low-cost insurance policy” against economic downturns, expecting positive returns in most scenarios unless there is a significant economic rebound with inflation, which could lead the Fed to raise rates, negatively affecting bonds.
Additionally, McIntyre warned of potential market volatility stemming from the upcoming US election.
He predicted that “election-related market volatility” could begin earlier than usual in…
