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Global rate markets are recalibrating against the backdrop of a Federal Reserve tightening cycle, with a stronger dollar and elevated U.S. yields now shaping how conditions transmit to equity and bond markets worldwide.
The Fed's rate path carries implications that extend well beyond U.S. rates could keep global bond yields elevated.
From a physical-markets standpoint, the mechanism is familiar: when the world's reserve-currency issuer raises its policy rate, the pull on sovereign yields elsewhere tends to follow.
Cross-border capital flows reprice, and the adjustment spreads. The equity valuation channel Equity markets face the discount-rate arithmetic directly.
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