Macro Insights Weekly - Economic implication of shifting yield curves

Resilient demand and price data have pushed global fixed income markets to a point of capitulation. As rate cut expectations are pared back, investors need to watch for potential fault lines.
Bond selloff has caused no consternation in global markets yet.
The lack of panic reflects healthy wages, earnings, and capital gains.
Balance sheets can absorb rates that reflect healthy returns on capital.
There could however be a point when high rates affect a sensitive part of the financial markets.
Market complacency could be upturned by continued inflation surprises.