European and US bonds rapidly diverge as economic wedge widens
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As of October 15, 2023, the gap between U.S. and German 10-year bond yields has reached 183 basis points, the widest since July; Simon Blundell from BlackRock predicts further divergence; U.S. jobs growth in September indicates economic strength, while euro area business activity contracted; Goldman Sachs forecasts the yield gap to rise to 200 bps; Germany's economy is expected to contract for a second consecutive year in 2024; France plans to raise taxes and cut spending to reduce its budget deficit; Bank of America doubts the euro zone can sustain 2% interest rates; UBS sees potential growth in Spain and Italy; the OECD expects U.S. growth at 2.6% in 2023, compared to 0.7% in the euro zone.
#Bonds #Economy #InterestRates #Germany #Usa #Ecb #Fed #Inflation #FinancialMarkets #Oecd
https://www.kitco.com/news/off-the-wire/2024-10-15/european-and-us-bonds-rapidly-diverge-economic-wedge-widens
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