#stockmarket #volatility #market #yahoofinance
Charles Schwab Chief Fixed Income Strategist Kathy Jones joins Market Domination to discuss her bond market (^TNX, ^TYX, ^FVX) outlook for 2025.
Jones predicts bond market volatility will remain elevated and potentially increase in 2025. She cites presidential policy uncertainties and economic variables related to growth and inflation as creating "a pretty good setting" for sustained bond market volatility throughout 2025.
"Add in that the Fed [Federal Reserve] is now looking at this and saying, ‘well, you know, maybe we’re not gonna cut [interest] rates as much as we thought because of all these factors,’" she states.
Jones explains that while the 10-year yield could reach 5%, this would require continued economic resilience, a strong or improving labor market — which she notes "would mean the chances of Fed rate cuts are pretty slim" — persistent inflation pressure, and tariff and immigration reforms that drive wage increases.
"On the policy end, there’s… a sequencing of these things over time, so it’s not an immediate impact, but the market looks forward and says, ‘well, if we get all this stuff, we’re probably gonna see higher yields from here.’"
However, she characterizes current yields hovering between 4-4.5% as "fair value," noting there is "some cushion" while advising investors to remain "cautious on duration."
To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
This post was written by Angel Smith
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