U.S. Outlook: Fixed income markets on the move

Scott Anderson
Posted by Scott Anderson
Chief Economist

We are seeing a dramatic sell-off in global fixed income markets.

Graph showing 10-year yields on bonds of US, Germany, and Japan.In this week’s report, I look at what may be behind this sell-off and what implications could be for the FOMC and timing of Federal Reserve interest rate hikes.

Highlights are outlined below, followed by a link to the full U.S. Outlook report, delivered on June 5.

Key observations:
  • The epicenter of the bond market sell-off has originated in Europe.
  • The deflation scare around plunging oil and commodity prices is unwinding.
  • Fear of a Greek exit from the Eurozone is also being unwound, despite continued political brinkmanship.
  • The Fed is about as close as it can get to raising short-term interest rates for the first time in more than nine years.
Click here to read my full report.

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