No real change as global bond yields have continued to rise from their late August low as inflation picks up momentum, although after more than doubling in just a few weeks I wouldn’t be surprised to see the US 2-years take a rest on the upside. This morning well respected previous Fed Chair Janet Yellen said she expects inflation to remain strong into mid-2022 but it wont spiral out of control as many fear – this is undoubtedly what policymakers are hoping for and at this stage it could easily prove correct, especially as central banks start to normalise interest rates i.e. start hiking. If central banks can get this balancing act right, then equities can rally a lot further.
MM remains bullish bond yields from current levels into 2022
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