Rates Spark: Alice In Yield-Curve Land


  • Rate markets seem to have fallen through a rabbit hole into a fantasy world where every new bit of information points to lower growth.
  • That the rally in rates, and associated curve flattening, is occurring at a time the phase of economic acceleration comes to an end can create a misleading impression.
  • We think the economic signal sent by yield curves should be taken with a pinch of salt due to distortions created by central banks.

Red arrow moves down the stairs
AlexSecret/iStock via Getty Images

By Padhraic Garvey, CFA, Benjamin Schroeder, Antoine Bouvet

Do not take the signal from rates markets at face value

The debate of whether, and how, global markets need to price a worsening of the global outlook rages

(Source: Refinitiv, ING)

(Source: Refinitiv, ING)

This article was written by

From Trump to trade, FX to Brexit, ING’s global economists have it covered. Go to ING.com/THINK to stay a step ahead. We’re sorry we can’t reply to individuals' comments.Content disclaimer: The information in the publication is not an investment recommendation and it is not investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument.This publication has been prepared by ING solely for information purposes without regard to any particular user's investment objectives, financial situation, or means. For our full disclaimer please click here.

Recommended For You

Comments (1)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.