The differing tones of the Fed, ECB and BoE at their recent meetings have seen yields rise in the US more than elsewhere and reignited the rally in the US dollar. That pattern could last a few more months. But we expect falling inflation in the US to mean yields ultimately decline there more than elsewhere, although an impending recession might mean this doesn’t immediately send the dollar’s rally into reverse.
This publication has been resent due to an error with the original distribution.
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