Global yields surge [Video]

Ipek Ozkardeskaya ipekScope

Global yields are soaring as rising inflation due to oil prices force investors to rethink the outlook for central bank policy. While European central bank expectations were already pointing at the possibility of summer rate hikes, the Fed funds futures have now started pricing more than a 50% chance of a December rate hike — a stunning reversal from expectations for multiple cuts earlier this year. With equity valuations stretched and borrowing costs rising fast, a market correction looks inevitable.

Author

Ipek Ozkardeskaya

ipekScope

Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.

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