With an agreement on the debt ceiling easing macro concerns, the aftereffects of avoiding default could pose new challenges for bond ETF investors.
"Now [The Fed] is going to hit it with trillion dollars of sales that will make short-term Treasury rates rise," he said. "And that will feel like an interest rate hike."
"Low rates push people to take risk on [and] go buy stocks," Lutnick said. "Now you have people saying, 'Hey, maybe I should just put my money in Treasurys. I get 5% take no risk.' And that's money coming out of the stock market." "You're going to see the stock market go sideways, but the bond market is going to continue to draw in money and get a lot of power," Lutnick said.
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