Golden Ten Data, 26 September, Wellington Management Company’s European, Middle Eastern and African multi-asset strategy director, Supriya Menon, said in a report that the more expansionary fiscal policy after the US election may lead to an increase in the 10-year US Treasury yield, due to balanced real interest rates and balanced inflation. The yield curve may steepen, and the US dollar typically appreciates due to a shift in relative growth dynamics and favorable interest rate differentials for the US. The fiscal expansion after the US election may also affect the interest rate policy of the European Central Bank, and the European Central Bank and the Federal Reserve may have limited space to implement different policies.
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Golden Ten Data, 26 September, Wellington Management Company’s European, Middle Eastern and African multi-asset strategy director, Supriya Menon, said in a report that the more expansionary fiscal policy after the US election may lead to an increase in the 10-year US Treasury yield, due to balanced real interest rates and balanced inflation. The yield curve may steepen, and the US dollar typically appreciates due to a shift in relative growth dynamics and favorable interest rate differentials for the US. The fiscal expansion after the US election may also affect the interest rate policy of the European Central Bank, and the European Central Bank and the Federal Reserve may have limited space to implement different policies.