Rate hikes are hardly a ‘surprise’

Be careful subscribing to financial media framing recent central bank hikes as being a ‘surprise’.

As the charts below illustrates, the 2 year bond yields have already factored in a rise in interest rates.

I expect these government yields to fall in the coming months as they converge towards the central banks respective cash or benchmark rates.

May 5, 2022
by Rob Zdravevski

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