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SocGen Quick-Take on Central Bank Message: Too Loose

US TSYS
On the heels of Fed, BoE and ECB policy announcements, Soc Gen said central banks are sending a clear message: "policy is too loose given the economic context, including looming inflation risks." Nevertheless, 10Y yields remain mired appr 25bp below Oct highs.
  • This could change in 2022, but it will require a change in bonds' demand dynamics, brought on by looming inflation risks, the prospect of rate hikes and much-diminished support from asset purchase programmes.

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