Most of us are familiar with QE but what is QT? When the Fed reduces its balance sheet it is known as quantitative tightening, the flipside of quantitative easing. The US Federal Reserve at its December FOMC put the world on notice that tighter financial conditions are ahead. What does it mean? The possible Bifurcations would make Mandelbrot wince. Firstly, the bond market has a lot more work as the task of financing governments gets more difficult without central banks … Continue reading “What You Need Know About Quantitative Tightening QT Bifurcations Explained”
Inflation expectations around the globe continue to rise, hitting multi decade highs in some cases. With investors’ exposure to duration near record highs what may seem an unassuming rise in yields could inflicts trillions of dollars in losses.
Brazil’s central bank Banco Central do Brasil followed the Federal Reserve’s 25bp cut with a 50bps cut to record lows in a unanimous decision saying global economic outlook uncertain ands risks of greater slowdown persist.