Standard Chartered Leave USD & Tsy Yield Forecasts Unchanged

Standard Chartered note that their Fed view change (outlined in a previous bullet) does not alter their USD forecasts. "The likely market takeaway will be that the Fed wants to remain behind the curve on hiking." They also chose not to revise their U.S. Tsy yield forecasts. Their existing yield forecasts "build in higher short-end yields during the next year, but a shallower trajectory than is now implied by the forwards." Further out the curve, they "continue to believe that the highs for the 10-Year yield were reached in Q1;" as such, they maintain their mid-'22 forecast at 1.60% and end-'22 forecast at 1.40%.