Free Trial
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 year, we have seen that the significant liquidity injections from central banks have generated a strong recovery in risky assets, with some equity markets constantly reaching new all time highs (i.e. SP500).
- However, some investors have been concerned that a potential tightening cycle could eventually lead to a sharp retracement as the uncertainty over the economic recovery remains elevated.
- The chart below (source: Morgan Stanley) shows that the decline in LT US real yields has also been a strong factor behind the recovery in global P/E ratios.
- The fall in US 10Y real rate from +1% in the end of 2018 to nearly -1% in June 2021 was associated with a rise in the forward P/E ratio (MSCI global) from 13 to over 18.
- Could rising LT bond yields become a risk for global equities in the medium term?
Source: Morgan Stanley
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok