US mon pol
So the US hiked, which we’ve talked about relentlessly for a while now.
The update itself, below changes highlighted, contains a crucial point. “The Committee anticipates additional firming” is now largely gone.
That’s Central Banker speak for “pretty much done”.
I would still pencil in another hike, maybe even two, but the relentlessly hawkish stuff is done now, with banks failing, and inflation moving generally lower, even as core remains persistent.
I would image that’s why we are seeing REITs perform well today, and why US bond yields fell back.
It really looks like 3.5% is as far as yields can push, and certainly no further than 4%, for anything length of time.
No call to action, we are well positioned.
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