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CONTRIBUTORS

Anujeet Sareen, CFA

Portfolio Manager
United States

Katie Klingensmith

Senior Vice President, Investment Specialist
Brandywine Global

In this video, Portfolio Manager Anujeet Sareen and Senior Vice President – Investment Specialist Katie Klingensmith discuss the drivers behind the recent moves in US Treasury yields. They cover a range of topics, including:

  • The outlook for growth and inflation
  • What the Federal Reserve may need to see to keep rates on hold
  • A potential shift in the equilibrium rate
  • The impact of fiscal policy on the direction in yields

While there are several factors influencing growth and inflation, they describe three potential catalysts that could drive yields lower.

WHAT ARE THE RISKS?

All investments involve risks, including possible loss of principal.

Equity securities are subject to price fluctuation and possible loss of principal.

Fixed income securities involve interest rate, credit, inflation and reinvestment risks, and possible loss of principal. As interest rates rise, the value of fixed income securities falls. Low-rated, high-yield bonds are subject to greater price volatility, illiquidity and possibility of default.

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