INTEREST RATES ENTER A NEW REGIME

摘要

TWO years IS A long time in the world of US interest rates trading. Back in mid-2016, the federal funds rate had nudged up to 0.25%, but the hunt for yield remained all-consuming for investors needing to satisfy return obligations to their end clients. Fast-forward to today, and the US Federal Reserve (the Fed) is in a rate hike cycle, while yields on the benchmark 10-year treasury note have broken through the 3% barrier - often viewed as signalling the end of the bull bond market - no fewer than five times since late April.