Less fear of more hikes |
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Macro outlook • Inflation fears and financial fears are still battling for the leaders jersey in the financial markets. Financial fears have been in the lead in recent weeks: equities have tumbled and credit spreads have widened as risk appetite has waned. This has boosted demand for government bonds. Short yields have fallen in both the US and in Euroland since the start of June. However, inflation fears could easily regain the lead if oil prices continue to rise. Hence, uncertainty is high.
Filed under: Fundamental
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