The leaders and laggards as central banks turn up the heat

Rising rate environment

With the spotlight on central banks tightening monetary policy, Fulcrum Asset Management's Andy Bevan, partner and fixed income portfolio manager, and Elina Theodorakopoulou, director and fixed income portfolio manager, take a closer look at the global drivers.

Government bond 10-year yields in the major markets (major five countries plus Australia) have rebounded to new highs for the year since mid-year. The move has been quite pronounced since early September. Prior to this, longer maturity bond yields have remained range-bound for much of the past year. Focus on the gradual normalisation of global monetary policy has been behind this recent move and puts the spotlight squarely on the central banks as we start the annual IMF meetings.  A growing number of countries are operating at unemployment rates below pre-crisis levels, though infl...