Assessing the outlook for DM monetary policy & bonds

Even though we think that most major developed markets (DM) central banks will hike their policy rates more slowly than investors currently anticipate over the next two years, we still expect the yields of 10-year government bonds to rise at least a little in most major DMs over that time. We anticipate that the increase will be the largest in the US, where we think inflationary pressures are strongest.
Franziska Palmas Markets Economist
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