We now think that 10-year government bond yields in most developed markets (DMs) will rise further. However, we think that they will climb more rapidly in the US than elsewhere in the developed world. As such, we have revised up our forecast for the US dollar, and expect it to strengthen somewhat between now and end-2022. Nonetheless, we are sticking to our view that DM equities, including in the US, will generally make further ground as economies re-open and corporate earnings rebound.
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