real yields

Eurozone Growth Prospects and US Rates: Diverging Paths Amid Fiscal Adjustments

A revision of the eurozone's long-term growth outlook would have a significant upward impact on euro swap rates. This is unlikely to happen overnight, but in our view should build gradually over time. In the US, it's a steady state along the coupon curve. But there’s lots going on in the pipes of the money markets as repo tightness persists