After central banks gathered in Portugal at the ECB Forum earlier this week, a turn in European inflation and a strong 1Q GDP revision in the US caused a sell off in developed market sovereign debt. Bloomberg Intelligence’s Chief US Rates Strategist Ira Jersey is joined by his European counterpart Huw Worthington on this Macro Matters edition of the FICC Focus podcast. Huw gives his outlook for inflation and central bank policy actions in Europe and the UK, while Jersey highlights his shift in view that the Federal Reserve may hike further.

In this episode’s Interest Rate Intro segment, US Interest Rate Strategy Associate Will Hoffman asks Jersey about the Fed’s bank stress tests and how they may be affecting markets. Jersey gives a summary of the tests and his view that bank compliance has depressed risk taking and therefore liquidity.