Chart of the Month: November 2023



In October investor focus shifted from the front-end to the back-end of the yield curve. The aggressive sell-off seen in longer dated bonds, coupled with significant underperformance caught the attention of investors as the rise in yields caused financial conditions to tighten. This poses the question, will tighter financial conditions likely affect the impact on future monetary policy and could it alleviate pressure on central bankers to tighten further in the future.