BCA Research advised on Tuesday that an economic slowdown was coming. The bond market, the research shop continued, would see the approaching stumble before the Fed got wind of the trend. “Bonds have already discounted a lot of hawkish Fed rhetoric in recent weeks. Moreover, the selloff at the long-end of the Treasury curve is growing tired, according to our short-term momentum measure. Valuation has improved and there should be strong technical support near the March high of 4.65%.”
