The bong end is doing the heavy lifting today as the market looks towards a future that looks much like the 2010s past of low rates and low yields. ECB top economist Isabel Schnabel today highlighted how she's been surprised by the fall in inflation. That's led to strong bids in duration throughout the world including:
- US 10s down 10.6 bps
- UK 10s down 16 bps
- German 10s down 10.1 bps
- Australian 10s down 11.6 bps
That's reason to cheer for equities and it's increasingly clear in the S&P 500, which is up 0.1% to 4582 after opening lower.