Barclays Raises Treasury Yield Targets by 35 Basis Points, Advises Positioning for Higher Rates

According to Barclays rate strategists, the bank raised target yields across all Treasury maturities by approximately 35 basis points last week, advising clients to position for higher rates. The adjustment aligns with Barclays' economics team, which shifted its view on Federal Reserve policy; previously expecting rate cuts in 2027, the team now anticipates the Fed will maintain rates unchanged. Strategists Anshul Pradhan and Demi Hu attributed the revision to the Fed's abandonment of forward guidance under Chair Kevin Walsh, noting this shift raises risk premiums through heightened uncertainty.
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