Analysts Answer Listener Questions On Where Rates Are Headed

<p>This week Thirty Capital CEO Rob Finlay took questions from listeners and had the team of analysts respond to them.</p> <p>The questions are extremely relevant given the current economic climate and announcements anticipated in coming days and weeks.</p> <p>A listener emailed Rob, asking specifically when is the best time this week to lock in rates. Another listener emailed Rob to ask if rates will go lower. </p> <p>Rob put these questions to the team, also asking if they foresee a one percent ten-year Treasury within the near term.</p> <p>Lock In Before Chairman Powell Addresses Fed</p> <p>Analyst Bryan Kern took on the first question and said the choice for the listener was whether they should lock-in rates before or after the Fed meeting this week. </p> <p>“Given what we know about the Fed, and what Federal Reserve Chairman Jerome Powell is going to say . . .  I think he’s going to be pretty dovish,” observes Bryan. “We could pick up 10 basis points towards the end of the week versus where we are now.”</p> <p>Analyst Jay Saunders says he recommends making deals and transactions ahead of Chair Powell’s speech on Wednesday. He says: “We could certainly see significant moves (based on the Fed) so why would you put yourself at risk?”</p> <p>Analyst Jason Kelley agrees, saying his approach would be to recognize when you have a good deal instead of chasing a few basis points. </p> <p>Focus Is On Delta Variant And Economic Data</p> <p>Incoming data on the Delta variant, along with GDP data on July 29 will definitely impact rates. Bryan foresees economic growth coupled with a lot of volatility in the stock market.</p> <p>He notes: “That (volatility) just tells me no-one has a clue, and we just need to wait for these numbers.”</p> <p>However, Jay downplays the impact of COVID on the economy, saying what people are really looking at is employment numbers, which kicked off a rally last week. </p> <p>COVID certainly plays into it, agrees Jay, but the big question people are asking is can the US expect the growth the ec