Don Curren 🇨🇦🇺🇦
1 Desjardins: Headlines blame rising #global #bondyields on #inflation fears, but the truth is more unsettling. The #termpremia embedded in #bond #yields, which is the additional compensation #investors demand to hold debt, has risen sharply. The last time term premier was this high … 🧵
May 19 at 4:51pmWeb
Show threadDon Curren 🇨🇦🇺🇦2d ago
2 Desjardins: … the sustainability of #sovereign #debt was in serious question. #Breakeven #inflation rates suggest that #marketparticipants are confident #centralbankers will contain #pricepressures. However, with rate cuts no longer in the cards, war ongoing in the Middle East … 🧵 #bonds #yields
Show threadDon Curren 🇨🇦🇺🇦2d ago
3 Desjardins: … and #governments finding it difficult to rein in #spending, #investors more concerned about #fiscal #pressures. In comparison to an #oil-driven spike in #inflation, that’s a much more difficult problem for #policymakers to solve. #bonds #yields