Insights

Macro Insights Weekly - Economic implication of shifting yield curves

18 March 2024
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  • Resilient demand and price data have pushed global fixed income markets to a point of capitulation. As rate cut expectations are pared back, investors need to watch for potential fault lines.
  • Bond selloff has caused no consternation in global markets yet.
  • The lack of panic reflects healthy wages, earnings, and capital gains. 
  • Balance sheets can absorb rates that reflect healthy returns on capital.
  • There could however be a point when high rates affect a sensitive part of the financial markets.
  • Market complacency could be upturned by continued inflation surprises.

 

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