The investment package in Germany and the associated ‘abandonment of the debt brake’ has caused a lot of movement in the eurozone bond market. Meanwhile, central banks have to manage the balancing act between slowing economic growth and rising inflation. Dániel Bebesy, Fixed Income Portfolio Manager at Erste Asset Management Hungary, talks in an interview about the recent central bank meetings and their impact on the bond market.
Inflation, coupled with restrictive central bank measures and recession worries, continue to keep the markets busy. This is also shown by a look at some important financial charts.
How the yield curve of a bond looks depends on several factors. In his article, fund manager Tolgahan Memişoğlu explains what this means and why yield curves could become steeper again in the future.
So far this year, high inflation rates have been the driving factor on the financial markets. This could now change, as Chief Economist Gerhard Winzer writes. Disappointingly weak indicators of economic activity could now increasingly come into focus.
In the US bond market, the yield on two-year government bonds had risen above the yield on ten-year bonds, creating the rare situation of an inverse yield curve. This was last the case in 2007.
