We doubt the surge in the yields of developed market high-grade government bonds over the past week marks the start of a return to the pattern of the first three quarters of 2022. Instead, we forecast that those yields will drop back in 2023, to levels that are typically below those that they reached earlier this month after trending down in October and November. We don’t envisage big declines in yields, though, even after the latest sell-off. So, we don’t see a retreat in them giving stock markets much respite. Indeed, we suspect equities will remain under pressure in the coming months as recessions take hold.
The next edition of the Capital Daily will be published on 3rd January 2023 after the holiday period.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services