The official line is that QT has added 15-25 bps on 10-year gilts, but it’s probably adding quite a bit more than that, says Huw Worthington, chief European rates strategist at Bloomberg Intelligence, who sees signs that central banks are addressing that now. In this episode of the FICC Focus podcast, Worthington is joined by BI chief US rates strategist Ira Jersey and senior US & Canada rates-strategy associate Will Hoffman to discuss takeaways from the recent Federal Reserve, Bank of England and Bank of Canada meetings. The trio discusses the outlook for the path of monetary policy and the direction of interest rates and yield curves across North American and European sovereign-bond markets. They also examine the focus on shifting balance-sheet policies as North American funding markets see some pressure and the Bank of England slows the pace of asset runoff. 

The Macro Matters podcast is part of BI’s FICC Focus series.