Christian Lenk, an analyst at the German Central Cooperative Bank, stated in a report that speculation about a Federal Reserve interest rate hike is reasonable. However, he noted that partly due to the latest inflation data (which came in below analysts’ expectations in June), “this does not necessarily mean the Fed will raise rates.” Lenk said that speculation about the key interest rate is also somewhat reflected in the long end of the U.S. Treasury yield curve, although to a much lesser exte

Christian Lenk, an analyst at Germany’s Central Cooperative Bank, stated in a report that speculation regarding a Federal Reserve rate hike is reasonable. However, he pointed out that in part due to the latest inflation data—which came in below analyst expectations in June—“this does not necessarily mean the Federal Reserve will raise rates.” Lenk said speculation about the key interest rate is also reflected to some extent at the long end of the US Treasury yield curve, although not to the same degree as at the short end. Germany’s Central Cooperative Bank continues to expect volatility in 10-year US Treasuries to remain moderate and forecasts that the yield on 10-year US Treasuries will fall back to 4.40% within 12 months.