Market attention this year has been very much focused on hikes in central bank rates and when they might end.
Significant rates cuts are still expected in the US in 2024-2025, with rates falling from 5.375% to 3.75%, but they are then expected to settle around this level in subsequent years.
This hardening of expectations in regard to the level of official rates over the longer term has pushed up bond yields in the past month.
The primary driver of the higher-for-longer rate outlook is the diminishing risk of recession and growing expectations of a soft landing for the world economy
