Bloomberg Talks Charles Schwab Chief Fixed Income Strategist Kathy Jones Talks Treasuries and Fed Interest Rates
Mar 20, 2026
Kathy Jones, Chief Fixed Income Strategist at Schwab with decades of bond-market experience, and George Borey, fixed-income market participant from Allspring, discuss Treasuries, Fed rate repricing, yield-curve flattening, front-end overshooting, and where to position along the curve. They also touch on stagflation risks and safe-haven bond sectors.
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Market Repricing From Cuts To Neutral
- Markets are repricing Fed expectations from imminent cuts to potentially neutral or higher rates due to a longer-than-expected conflict-driven energy shock.
- Kathy Jones cites rising energy prices and a growth slowdown as the trigger pushing inflation expectations up in the near term.
Front End Overshoot Versus Anchored Long-Term Inflation
- Short-end yields are overshooting as traders rush to price in hikes while the Fed signals it's on hold and will wait for data.
- George Borey notes long-term inflation remains anchored near 2.4% despite one-year break-evens rising.
Rapid Curve Flattening Reflects Short-End Rush
- The curve flattened sharply as front-end rate-expectation moves outpaced long-end repricing, reflecting crowded short-end positioning.
- Kathy Jones says long-term trend may still steepen but current rush to reprice cuts into hikes flattens the 2s10.