Global Fixed Income Strategy - January 2020

Monthly insights and updates from the Invesco Fixed Income team

Feb 6, 2020 | Invesco Fixed Income

Measured on a year-on-year percent change basis, M2 and M3 growth have both been accelerating in the US since late 2018. There are two main reasons why broad money growth acceleration has occurred, and in this article, we explain how both factors have contributed. The first factor has to do with the banking sector and its responses to changes in financial regulation and US Treasury funding strategy, whereas the second factor is
associated with the so-called shadow banking sector, which has for a long time been relatively dormant.

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