The butterfly effect is where a change in a complex system can have large effects elsewhere. Indeed, US trade policies are having significant intended and unintended consequences for various countries that is impacting fiscal policy and politics and potentially and monetary policy and the bond market.

Participants:

• Jason Daw(Desk Strategy), Head of North America Rates Strategy
• Peter Schaffrik (Desk Strategy), Head of UK/European Rates & Economics
• Su-Lin Ong (Research), Chief Australia Economist

* Research Analyst opinions are their published views, independent of those expressed by Desk Analysts