Bond markets across the world are in no mood to budge, making it difficult for the Fed to soften their stance on interest rates. Though the Fed resonated a hawkish pause after 15 months of consistent rate hikes, they signaled increased tightening by the year-end.
Currently, bond yields globally have even pipped the already elevated interest rates. If interest rates does not fall, investors may expect tectonic shifts in global markets. Therefore, one has to be watchful and precisely follow trends in global bond yields which would deliver important cues on equity investing. As of now, bond market’s behaviour does not seem to be encouraging for equity markets and hence one has to be cautious.
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