The pain of higher rates will come next year and in 2025, says Amundi CIO

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  • Sees 10-year Treasury yields at 3.7% by the end of 2024
  • The pain coming from higher rates has been postponed
  • It will come next year and in 2025
  • Markets are overlooking the risk of a ‚bad surprise‘ on inflation
  • Does not think that markets are prepared for inflation to change course

That is certainly something to watch out for and as far as curveballs go, this is one that markets should be bracing for in case. And it is one reason that perhaps would work in the dollar’s favour to counter the argument that we’re now poised for an imminent demise in the currency heading into next year.

This article was written by Justin Low at www.forexlive.com.

Go to Forexlive

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