Precise dates for first rate cuts a ‘red herring’ for bonds

The exact timing of the first cut matters less than the fact rates are now set to fall this year. — Reuters

EVERYONE’S guilty of it – but an obsessive guessing game over precise dates for the first central bank interest rate cuts this year seems increasingly pointless to many investors.

On the horizon of a two-year bond or longer, the exact timing of the first cut matters less than the fact rates are now set to fall this year and the extent of that down cycle is the only issue.