The heavy sell-off in US 10 year bonds continued once again this week as Fed’s Brainard suggested that Quantitative Tightening (QT) could take place as soon as next month. This was even faster than the market was expecting with most analysts seeing US QT happening in June. This even more hawkish shift weighed on stocks midweek but boosted the USD and that trend could continue. The RBA took a hawkish hold this week as they, like the Fed, start to express concerns about rising inflation. China’s Service PMI data dropped sharply to 42.0 into contractionary territory which further weighed on global sentiment for stocks.

Other key events from the past week

Key events for the coming week

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