The Federal Reserve will have a relatively small holding of Treasury securities even after its second round of bond buying concludes, according to Carl Lantz , Credit Suisse AG’s head of U.S. interest-rate strategy.
Carl Lantz, head of interest-rate strategy at the primary dealer Credit Suisse Group AG, says the 30 year mortgage rate should "drift to" three and 5/8%. Lantz talks with Bloomberg's Ken Prewitt and Tom Keene on Bloomberg Radio's "Bloomberg Surveillance."
Treasury yields were close to record lows after Federal Reserve Chairman Ben S. Bernanke refrained from discussing specific steps for further monetary stimulus, sustaining the refuge appeal of the world’s safest assets.
Treasuries rose for the second straight quarter, bolstered by their longest rally since 2008, as concern global growth is slowing and Europe’s debt crisis is worsening stoked demand for the haven of U.S. government debt.
Federal Reserve Governor Daniel Tarullo urged regulators to set market-wide minimums for safety margins on loans backed by securities and favored high capital requirements for banks that rely heavily on non-deposit funding.