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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
US
- In the past few months, debates on whether the US 10Y yield should be (significantly) higher based on the current level of inflation has been rising among market participants.
- While some investors agree that the 10Y yield should trend higher this summer, others are more skeptical and think that the high uncertainty (related to Winter 2022) is the main factor keeping long term rates very low.
- Interestingly, the US 10Y yield has also shown strong co-movement with the level of economic activity; improvements in the outlook are usually associated with periods of rising interest rates.
- The chart below shows an interesting divergence between JP Morgan Global Manufacturing PMI, which is considered as a good proxy of the global economic activity, and the US 10Y yield.
- The recent rally in global PMI is also suggesting that US 10Y yield should be significantly higher.
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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