Global Macro

Now that the US Federal Reserve (Fed) has finally started its eagerly awaited monetary easing cycle with an outsized 50bps cut, the US Treasury yield curve can be expected to steepen anew but we remain concerned about the growing long-term risk of runaway US fiscal debt. As for Japan, BOJ remains poised for more rate hikes after volatility subsides. Despite China’s barrage of stimulus announced, it remains uncertain whether it can reinvigorate China’s weak economic sentiment.