Top of the Morning: Fixed Income Strategist - Optics and opportunities

UBS CIO sees Q3's spike to multi-decade-high yields as a buying opportunity, expecting fewer Fed hikes than the market prices.

• Q3 yield surge: 10-year yields jumped from 4.37% at end-June to 4.63% by late August, then spiked near 5.35%, highest since 2002.
• Fed pricing gap: Markets price ~three more hikes through 2027; UBS CIO expects only two, with cuts possibly starting late 2027.

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