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
rob@karriasset.com.au

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: