BlackRock: Its too early to count on Fed to cut interest rates in March

Odaily News Rick Rieder, Chief Investment Officer of BlackRock Global Fixed Income, said that the market’s expectations for the Federal Reserve to start cutting interest rates in March may be too early. With U.S. Treasuries selling off across the board, Rieder said, I think todays contraction is somewhat justified. Market movements reflect that Powell does not intend to start cutting interest rates so aggressively so soon. Rieder said he was surprised by Powells dovish tone at the FOMC meeting. Rieder said he is underweight the short end of the yield curve and favors the middle of the curve when the Fed does start to turn. The sharp decline in longer-maturity Treasury yields has been surprising, Reider said. Demand for the long end of the curve has been one of the strangest things Ive seen. Historically, a 30-year run of just above 4% Treasury yields are less attractive and contain duration risk at a time when short-term yields are higher. (Golden Ten)