Markets’ Next Phase Is Outright Correction and Loss, Says BNY’s Yu

Geopolitical escalation from the war in Iran has prompted caution: Geoffrey Yu (BNY) says central banks will be "as hawkish as possible without hiking," signaling a continuation of restrictive rhetoric rather than immediate rate increases. Expect upward pressure on yields, risk-off flows into safe havens and elevated volatility across FX and commodities as central bank guidance keeps policy tight despite no fresh hikes.

Analysis

Geopolitical escalation from the war in Iran has prompted caution: Geoffrey Yu (BNY) says central banks will be "as hawkish as possible without hiking," signaling a continuation of restrictive rhetoric rather than immediate rate increases. Expect upward pressure on yields, risk-off flows into safe havens and elevated volatility across FX and commodities as central bank guidance keeps policy tight despite no fresh hikes.