Institution: Limited room for Fed rate hikes, bullish on US 10-year Treasury bonds

October 8: Infrastructure Capital Advisors is bullish on US 10-year Treasuries, anticipating that the Federal Reserve will raise interest rates only once more. In a report, the firm's CEO and portfolio manager noted that one more rate hike aligns with the Fed's "dot plot" (i.e., policymakers' interest rate projections) and is less than current market pricing expectations.

He stated: "The US 10-year Treasury yield is typically 100 basis points higher than the Fed's terminal federal funds rate. Therefore, we expect that as weak housing data and sluggish core CPI data prompt the Fed to pause rate hikes, the US 10-year Treasury yield will stabilize around 5%."