Jefferies: Central banks may raise rates less than market pricing expects

Jefferies global economist Mohit Kumar stated that the current US Treasury yield levels are attractive for long-term investors, but uncertainty remains high. "We are not very confident about whether the next 10 basis point movement in the US 10-year Treasury yield will be upwards or downwards." Jefferies is more certain that central banks will not implement rate hikes as large as those currently priced in by the market. According to data from London Stock Exchange Group (LSEG), the money market is currently expecting a cumulative 93 basis point rate hike by the Federal Reserve over the next 12 months.