Economic data released last week continued the trend of being better than expected, raising expectations that central banks around the globe will look to normalise monetary policy going forward – and the Bank of Canada was the first to move this year with a 25 basis point rate hike.
Equity markets have continued their stellar start to the New Year albeit with a brief pullback in the middle of the week, the US share market pushing to a new record high. Of note has been the move in long term yields which continued to drift higher on a daily basis at the moment, a trend which started in early December. The futures market has now moved toward pricing in 30 basis points of tightening over the next 12 months.
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