M&G's Leaviss: Will Yellen commit to a second term?

Trump favours her low rate policy

M&G's head of retail fixed interest Jim Leaviss has described how US Treasuries are looking cheap for the first time in years, but are dependent on the future actions of Federal Reserve chairman Janet Yellen.

Leaviss is manager of several M&G bond funds including the £1.6bn Global Macro Bond fund. He highlighted 10-year US Treasuries as a good asset to hold but said it would all depend on the Fed's "dot plot". "10-year US Treasuries are looking interesting for the first time in a very long time, they are cheap if the Federal Reserve dot plot is to be believed." Having hiked rates in March, its third since December 2015, the Fed has said it could raise rates twice more this year. The most recent dot plot indicates US rates are likely to be 1.3% in 2017, 2.1% in 2018 and 3% in 2019. ...