Get used to higher rates as government spending and AI borrowing show no signs of easing: Economist

HSBC Chief Asia Economist Fred Neumann said bond markets are seeking a more hawkish Federal Reserve signal as fiscal pressures and rising government borrowing demand weigh on fixed-income markets. He also argued that the yen is fundamentally undervalued and could strengthen if capital returns to Japan, highlighting potential upside for the Japanese currency amid shifting global flows.