Barclays recommends investors to position themselves for higher US Treasury yields.

After the Federal Reserve shifted to a more hawkish stance last week, Barclays interest rate strategists recommended clients to position themselves for higher yields on US Treasury bonds. The Barclays team raised the target yields on various maturities of US bonds by about 35 basis points, in line with adjustments made by the bank's economists. Barclays economists had previously predicted a rate cut by the Fed in 2027, but now believe that the Fed's policy will remain unchanged. Additionally, Barclays strategists Anshul Pradhan and Demi Hu wrote later last week that under Chairman Kevin Wash's leadership, the Fed's decision to abandon forward guidance has led to an increase in the risk premium generated through uncertainty channels.