Bond SlumpFor Jean-Marie Mercadal, who helps oversee €68 billion as chief investment officer at Paris-based OFI Asset Management, the Dutch and French votes will turn out to be non-events. Rising yields hurt investors holding the debt and raise financing costs for companies. It would also be negative for emerging markets as investors would favor US assets to avoid being exposed to weakening local currencies. Investors see a one-in-five chance the central bank will raise borrowing costs at its March meeting, with the odds climbing to about 65% for the June gathering. An acceleration of inflation could prompt the Fed to increase rates faster, which may rein in economic growth and dent investor appetite for risk assets.

Source: The Edge Markets February 09, 2017 11:03 UTC