JPMorgan: If More Fed Officials Take a Hawkish Stance, It Could Trigger a Bond Selloff

JPMorgan strategists said the front end of the U.S. Treasury yield curve looks "fairly priced" after Tuesday's sharp selloff, but warned that if the more hawkish stance shown by some Fed officials spreads among policymakers, it could trigger a more violent bond selloff and cause the yield curve to flatten. The team led by Jay Barry, head of global rates strategy, said after remarks by Fed Governor Christopher Waller and Dallas Fed President Lorie Logan: "It is notable that two committee members who did not dissent at the September meeting have shifted their tone in such a way."