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Consider embracing certain bonds as the U.S. economy shows signs of strength, John Hancock’s co-chief investment strategist said.
Treasury yields on Thursday jumped following July retail sales that outstripped economists expectations, while weekly initial jobless claims continued to decline. With investors snapping up risk assets such as stocks (SP500)(COMP:IND)(DJI), Treasury prices fell, driving up the shorter end of the yield curve (US2Y) to levels not seen in two weeks. Yields move inversely to prices.
“Good news is good news again for growth. For an asset allocator, that’s great news,” Matt Miskin, co-chief investment strategist at John Hancock, told Bloomberg TV in an interview Thursday.
Cooling inflation and recession fears had prompted traders to price in multiple and big interest rate cuts by the Federal Reserve, although odds of a hefty 50bp cut in September have dropped. Miskin said it’s “overly…
