Bloomberg Surveillance · Sep 24, 2026
With Ed Al-Hussainy, Portfolio Manager, Fixed Income at Columbia Threadneedle Investments
Markets are pricing roughly three to four Federal Reserve rate hikes, and Ed Al-Hussainy of Columbia Threadneedle treats that as the floor rather than the ceiling.
Much of the worry about this year's bond selloff has centered on deficits. Al-Hussainy said the large majority of the repricing has come from the Fed, the fiscal picture has not changed this year, and bonds are now starting to overshoot.
"I think it's getting in the zone, to be honest."
Ed Al-Hussainy, Portfolio Manager for fixed income at Columbia Threadneedle Investments, on Bloomberg Surveillance, where he came on after writing that the Fed will have to work harder to squeeze excess demand out of the economy.
The full segment is covered here so you can skip it.
Here are the 6 takeaways that matter.
Key Takeaways
Bonds are close to a buy, because yields are starting to overshoot the demand story
3 to 4 hikes is the floor, and only a growth or labor-market accident would stop them
Hikes help whether inflation comes from demand or from supply shocks, because they anchor expectations
The Fed, not the deficit, drove most of this year's bond repricing
His baseline is consecutive hikes through December, and October is in play despite the election
Rate markets show the tightening, risk markets do not
1. Bonds Are Nearly A Buy
Jonathan Ferro asked whether the bond market is a buy yet.
"I think it's getting in the zone, to be honest. I think we are starting to overshoot a little bit." — Ed Al-Hussainy
Weighing what is known about demand against about 100 basis points or so of Fed hikes, he said, the market has found a good balance and some value is appearing.
