Quarterly Outlook
Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges
Althea Spinozzi
Head of Fixed Income Strategy
Summary: Today we breakdown the FOMC's hawkish hold and the market's reaction to the upgrade of the outlook on the economy and higher dot plot projection for the Fed Funds rate for this year and the next two years as the Fed delivered a "higher for longer" message. We also preview the ECB and note that the long end of the US yield curve is the most critical, especially for pressure on the JPY, which has ratcheted dramatically higher ahead of a now critical meeting for the Bank of Japan. If yields continue higher, the BoJ must signal a willingness to tweak or risk further disorderly JPY declines. In stocks to watch, we note US homebuilder Lennar's strong results and highlight tonight's Adobe earnings call as the stock has ramped higher on anticipation of a boost from its new AI-driven products. This and more n today's pod, which features Peter Garnry on equities, Althea Spinozzi on fixed income and John J. Hardy hosting and on FX.
Listen to today’s podcast - slides are available via the link.
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