The US Fed surprised markets with hawkish guidance following an interest rate hold, leading to a rise in bond yields and a shift in market risk appetite. Attention also turns to the upcoming UK by-election and its potential implications for domestic policy.
Key Takeaways
- 1.The US Fed held interest rates steady but delivered more hawkish forward guidance than markets anticipated.
- 2.Market sentiment has turned risk-averse, with US bond yields rising and the NZD weakening.
- 3.Potential political leadership shifts in the UK following a by-election create fiscal uncertainty and volatility risks for gilts and sterling.
Table of Contents
- Highlights
- Data and events today
- Financial markets
- Global markets overview
- Key data and events
- Key themes and views
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Authors
Matt DillyBrian Martin
Securities
S&P 500US 10-yr Treasury note
Themes
Monetary Policy NormalizationFiscal Policy Uncertainty
Regions
GlobalUnited StatesNew ZealandUnited Kingdom