Two developed market central banks have already cut - Riksbank and SNB - and the BoC, ECB and BoE should follow suit over the next couple of months. But the higher for longer theme is dominating the US rates market. The divergence in macro and policy is the major theme in rates markets. The other important theme is that despite Fed cuts being priced out, risk assets continue to perform well with the S&P making new highs and credit spreads at cycle tights.

Participants:

• Jason Daw (Desk Strategy), Head of North America Rates Strategy
• Izaac Brook (Desk Strategy), US Rates Strategy
• Peter Schaffrik (Desk Strategy), Head of UK/European Rates & Economics
• Lori Calvasina (Research),Head of U.S. Equity Strategy

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