10
Jul
Conditions for a further rise in long-term rates
The Fed sticks to monetary normalisation. ECB’s economic projections are encouraging.
Renewed inflation in the UK. Risks of deflation have decreased in Japan.
Key points
- Heading for a rise in long-term rates in the United States
- However, the trend in the US must take better root
- The ECB is preparing a gentle approach to monetary policy normalisation for 2018 and will not hinder the rise in long-term rates much longer
- It is impossible to ignore renewed inflation in the United Kingdom: +2.9% CPI in May
- The Japanese bond market is still lacklustre
- Fewer opportunities on peripheral markets
