0454 GMT - The yield curve continues to normalize, plain and simple, Laffer Tengler Investments' Byron Anderson says in a note, adding that "we are firmly set up for higher yields in this environment." "Rate hikes do not solve Iran, oil, AI boom, or inflation," the head of fixed income says. They do increase borrowing costs for everyone else in the market, which will eventually hit labor and the consumer if the Federal Reserve gets aggressive with hikes, he says. Increasing bond issuance, massive debt and deficits, ever-increasing interest costs, and a Fed that's hands-off with guidance and balance-sheet management all point to higher yields.
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