Bond Warning

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Action Needed: Rising Yield Pressures

 

The Global Liquidity backdrop has changed radically. The US Fed has delivered its biggest ever 12-month boost to markets. The strong rally in risk asset prices comes with a warning that liquidity-driven surges often end suddenly. The bogey tends to be rising bond yields. We argue that the US economy looks set to accelerate and US Treasury yields could test 3% later this year.

 

 

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