J.P.Morgan Await More Attractive Entry Points For Bearish Positions

J.P.Morgan note that they "revised year-end (yield) targets higher last week to reflect larger fiscal stimulus and higher growth expectations, but we do not think now is the time to position for higher yields, and we await better location to re-enter bearish positions. Specifically, markets are pricing in Fed liftoff in mid-summer 2023, which seems aggressive under the parameters of the Fed's flexible average inflation targeting framework. Moreover, long-term Treasuries appear cheap to their drivers, and positions are short, indicating risks to lower yields over the near term."