Major Government Yield Curves Won't Steepen Further
Dow Jones12:37
0437 GMT - Most major government yield curves won't steepen much further over the medium term, despite the apparent recent rise in term premia, says Thomas Mathews, head of markets in Asia for Capital Economics. The bond selloff has abated somewhat, and yield curves are still fairly flat by past standards, he adds. That is even true in places like France, where there are clear concerns about the fiscal position, he says. Investors expect the average Fed funds rate to be similar over the next two years to what it will be over the subsequent eight, so a significant steepening through this channel is unlikely, Mathews adds.
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