What the market is now pricing for Fed and global central bank interest rates after the cease-fire

A two-week cease-fire agreed between the U.S. and Iran has reduced investor concern that major central banks will need to raise borrowing costs this year. The easing of geopolitical risk has supported a more risk-on stance, relieving upward pressure on yields and tempering expectations for further policy tightening.

Analysis

A two-week cease-fire agreed between the U.S. and Iran has reduced investor concern that major central banks will need to raise borrowing costs this year. The easing of geopolitical risk has supported a more risk-on stance, relieving upward pressure on yields and tempering expectations for further policy tightening.