Matthew Toms on yield curve
From Let the long end lead the Fed, says Voya fixed income CIO · · CNBC Television
“You're not seeing the two-year move higher, you're seeing the ten-year move higher. The inflation breakeven assumption has not moved higher meaningfully, and you're at a 2.16% yield. Also, not seeing confirming signs in currency markets or other markets that should be afraid of an acceleration of inflation here.”
On , Matthew Toms, Chief Executive Officer of Voya Investment Management at VOYA FINANCIAL INC, spoke about yield curve during Let the long end lead the Fed, says Voya fixed income CIO on CNBC Television.
About Matthew Toms
In September 2019, Matthew Toms, Chief Investment Officer of Fixed Income at Voya Investment Management, commented on Treasury yield movements and Federal Reserve policy. He described the steepening of the yield curve as reflecting a "pragmatic and patient" approach by the Fed, allowing the economy to grow. Toms stated that the move higher in yields was led by the long end of the curve, not the two-year, and noted the absence of confirming signals from inflation breakevens or currency markets that would indicate an acceleration of inflation. He characterized the situation as "Goldilocks" but expressed concern that the European Central Bank might eventually need to align with the Fed, which could affect markets. Toms also addressed political pressure on the Fed, saying he would urge President Trump to stop criticizing Fed Chair Jerome Powell, adding that Powell had "done a nice job" and his approach "trumps the political pressure." He attributed the rise in yields partly to the narrowing of trade tensions, describing it as a "narrower band of uncertainty" that markets favor, despite potential difficulties for the U.S.-China trading relationship.