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2026-07-14 13:54:11
[JPMorgan Chase recommends closing out flattening yield curve trades ahead of CPI and Congressional hearings, warning of tightening risks] (1) JPMorgan Chase strategists recommend that investors close out their 10- to 30-year US Treasury yield curve flattening positions before the release of the June CPI data and Fed Chairman Warsh's first testimony to Congress, in order to avoid potential volatility risks from these two events. (2) Recently, due to escalating geopolitical tensions and hawkish remarks from Fed officials, short-term US Treasury yields have risen by 6 basis points, causing the yield curve to flatten by 3 basis points. (3) Fed Governor Waller said that if the CPI data confirms that core inflation pressures remain strong, it is necessary to be wary of high inflation solidifying into market inflation expectations, at which point the Fed "will need to consider tightening monetary policy in the near future."
