Long term yields and the USD have taken another beating. China is far from reopening but markets have found some comfort that the Fed will slow down its rate hike pace. We believe the current correction will reverse in the months to come. The US curve inversion has deepened over the past week, with the difference between three month LIBOR and ten year treasury yields expected to increase to 165bp by next spring. Markets now expect the Fed to hike rates to 5% by next summer, and then send rates lower again to 3% in 2025 – see chart 1. At the data front, we had a somewhat softer reading from the US PMI figures, which ... (full story)