Meyrick, Love the explanation and agree wholeheartedly. I cannot get away from the feeling that this bear steeper is going to see 10yr and beyond yields rise sufficiently to climb above Fed funds, arguably a first for this move. But as you conclude, we will see some significant repricing in risk assets, notably stocks, but also EMG currencies I imagine with CNY at the top of the list. also, MXN, which has performed admirably during the past year may find itself under pressure in my view.
Dangerous curves
Meyrick, Love the explanation and agree wholeheartedly. I cannot get away from the feeling that this bear steeper is going to see 10yr and beyond yields rise sufficiently to climb above Fed funds, arguably a first for this move. But as you conclude, we will see some significant repricing in risk assets, notably stocks, but also EMG currencies I imagine with CNY at the top of the list. also, MXN, which has performed admirably during the past year may find itself under pressure in my view.