Halister News

(Bloomberg) -- Risks to global economy (including uncertainty around China FX policy, impact of ECB stimulus on European bank profitability, and impact of BOJ policy on JPY) “will support long-dated Treasuries in a (bull) flattening bias,” Deutsche Bank strategists led by Dominic Konstam say in March 4 note.

• For U.S., “key issue is that the Fed doesn’t raise rates in a vacuum of global growth whilst the U.S. growth outlook is at best stable, if not weaker”
• However there is risks that recent data “could be interpreted by Phillips curve traditionalists as consistent with the need to continue to push rates higher,” which would constitute a policy error and “a negative for risk asset valuations”