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From equities to currencies, bonds' move will anchor sentiment in Q4 as Fed nears taper

Written by Fullerton Markets | Sep 29, 2021 4:00:00 PM

In his exclusive CGTN report, our Chief Strategist, Jimmy Zhu, shared his views on the Fed's policy outlook.

Key takeaways include:

✅ The global financial market may experience more volatility in the coming months, as the bond yield may have more scope to climb higher.
✅ The U.S. 10-year government bond yield rallied over 100 basis points (bps) in the next three months.
✅ The current gap between the two indicators is much wider, with the latest reading for core PCE standing at 3.6%, way above the current 10-year bond yield at 1.5%.
✅ The 10 biggest stocks on the S&P 500 make up around 30 percent of the index's market value, and eight of these 10 companies belong in the technology sector.
✅ Fed may be forced to withdraw some of the stimulus due to persistent high inflation, so slowing economic activities will have limited impact on the Fed's upcoming policy, at least for the coming quarter.

Read the full report!