ING
Rates Spark: The damage has been done
From the original
https://think.ing.com/articles/rates-spark-the-damage-has-been-done/
Related speeches
4 itemsING Economics
Rates Spark: What the... is going on?
ING Economics
Rates Spark: So how bad could this whole thing get?
ING Economics
Rates Spark: The overshoot commences
ING THINK
Rates Spark: The damage has been done
The desk views the current elevation in US real yields as a critical factor that will influence FX dynamics, particularly as the market adjusts its outlook post-Iran deal. Per the full note [source], the US 10-year real yield remains structurally higher, hovering above 2%, while inflation breakevens have settled around 2.3%. This backdrop creates a less favorable environment for sustained rallies in pairs like EUR/USD and GBP/USD, which are sensitive to US yield fluctuations.