Good Fed Statement May Lead to Treasurys Selloff

Airtime: ET

While the Fed is seen keeping rates on hold Wednesday, a positive statement from the central bank on future moves could prompt a selloff in Treasurys, Ilian Mihov from INSEAD said. "The yield curve will shift up because people will be expecting high interest rates too soon, and then this excessive optimism may, in fact, generate a slowdown again," he added.