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Further pain may still be in store for global markets

We think the rises in global government bond yields – and falls in equity prices – have not run their course yet. Yields have typically peaked only shortly before the ends of central bank tightening cycles and we doubt this one will be different. We expect this, as well as the threat of slowing growth, to keep risky assets, such as equities and corporate bonds, under pressure until around the middle of next year. But we suspect markets will eventually turn a corner as tightening cycles draw to a close, with bond yields generally beginning to fall back later next year and equities starting to post solid – albeit not spectacular – gains. Global Outlook Drop-In (4th May, 10:00 EDT/15:00 BST): Our Global Economics team will be answering your questions as they and discuss their Q2 Outlook report in this special 20-minute briefing. Register to learn more about our above-consensus views on inflation and rates and how these feed our below-consensus take on the growth outlook. Register now

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