Lates News

BNP Paribas said in its quarterly outlook: "We expect Fed rates to continue rising through Q1 2027, consistent with our base case of three Fed hikes between September 2026 and January 2027." The expected hikes are driven by healthy economic growth, persistent deficits, and a surge in hyperscaler issuance, factors that together should push long-end yields higher and lead to a flat yield curve. But BNP Paribas analysts expect that as the small hiking cycle peaks in Q1 2027, the market will price in Fed credibility concerns, driving yields modestly lower from Q2 next year.