BlackRock's Pachatouridi: Is the market underestimating the pace of Fed rate hikes?

Financial conditions are looser today than at the start of the year

The first eight months of 2017 have challenged expectations for robust global reflation and reinforced the importance of taking a measured and practical approach to fixed income investing.

While global growth has been above-trend, the breakout many investors anticipated has not materialised.  Recent US inflation data has disappointed, which is complicating central bank decisions around raising interest rates.  Global bonds suffer biggest sell-off since 'taper tantrum' on Trump victory Surprisingly, financial conditions are actually looser today than at the start of the year, with the 10-year Treasury yield having moved lower since then. Having said that, the global yield picture still favours the US, as yields of German 10-year bunds and Japanese government bonds ...