Financials May 25, 2022 01:17 AM (GMT+8) · EqualOcean
The Bank of America believes that the Fed's interest rate hike has the risk of plunging the economy into recession or stagflation, so it recommends selling 10-year inflation protected bonds (TIPS) and holding longer-term tips. Interest rate strategists such as Meghan swiber and mark Capleton wrote in a report that the outside world is increasingly worried that the US economy will have weak growth and high inflation for a period of time, "which is expected to lead to higher breakeven inflation and lower real interest rates, especially in the long run." In this case, they suggest selling 10-year tips and holding 30-year tips, because this curve is bound to benefit from the scenario of hard landing of the economy and the scenario of "turning Dove" of the Federal Reserve when inflation is still high.

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