Global Fixed Income Strategy Feb 2018

Monthly insights and updates from the Invesco Fixed Income team.

Feb 27, 2018 | Invesco Fixed Income

Two critical US data points disrupted world financial markets in February – January wage growth and consumer price inflation. Both measures were higher than expected, igniting inflation fears and upsetting the prevailing calm in global stock and bond markets. While another 0.25% interest rate hike is widely expected at the US Federal Reserve‘s (Fed) next scheduled policy meeting on March 20-21, the January numbers raise questions about how many more rate hikes are on the horizon. These concerns and concerns about whether the Fed is on top of inflation have pressured benchmark interest rates higher.

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