Fixed income – The five trials ahead
Fixed income – The five trials ahead
Debate in the US fixed income market is now
primarily around whether bonds are in a coupon
clipping trading range or headed for a bear
market. The outcome will depend to developments
in the EU and how they influence the US
decision makers
Aside from the expectations of four
interest rate rises in 2018, the yield curve will be
key , and it is expected that the current administration
will do all possible to prop up the US economic
engine , to ensure a smooth 2020 re election for
Trump.
But the hope that normalisation might be
around the corner has been around for years.
Heading into 2018, the wisest approach may be to
assume the unwind process will be less a return
to normal and more a return to dealing
with Rainbow economics.
EU Forecast
euf:b18:28/nws-01