Multi-Asset Strategy Daily

Global government bond yields are testing cycle highs as markets price in persistent energy-driven inflation and a 'higher-for-longer' Fed path. Political instability in the UK and geopolitical tensions in the Middle East are further exacerbating the bearish sentiment in rates markets.

Key Takeaways

• 1.US Treasuries are facing persistent bearish pressure with markets pricing in a 'higher-for-longer' Fed path following a firm CPI print of 3.8% YoY.
• 2.The geopolitical situation in Iran and high oil prices (Brent > $105pb) are creating a persistent energy-driven inflation impulse rather than a transitory spike.
• 3.UK Gilts are underperforming global peers due to an escalating leadership crisis involving PM Starmer, leading to a higher term premium.

Table of Contents

• USD
• EUR
• GBP
• JPY
• Important Information
• Disclaimer

Document Preview

Page 1 of 3

Subscribe for full accessStart Free Trial