Not the time to fall asleep
Dec 01, 2023
As the US 10 year bond yield dropped from a peak of 5% in the second half of October to 4.3% today, US Bonds had their best month of performance since the 80s. The combination of softer inflation data and more dovish comments from the Fed make it more probable that the central bank is done raising rates. This is obviously good news for financial markets and also for equities. However, while we believe we are close to the peak of interest rates, we also know from past inflationary periods that the situation remains fluid and data dependant. Not the moment to fall asleep at the wheel for investors.