WS #16267
Global bond markets are repricing for higher-for-longer rates, with French 10-year yields hitting 5% and UK inflation rising to 3.5% on energy costs. In the US, mortgage applications fell 5.3% despite a slight rate dip to 7.41%, indicating that housing demand is structurally weakening under rate pressure. This macro environment suppresses high-multiple growth valuations and favors financials with net interest margin expansion.
Global Macro Rate Pressure
Global bond markets are repricing for higher-for-longer rates, with French 10-year yields hitting 5% and UK inflation rising to 3.5% on energy costs. In the US, mortgage applications fell 5.3% despite a slight rate dip to 7.41%, indicating that housing demand is structurally weakening under rate pressure. This macro environment suppresses high-multiple growth valuations and favors financials with net interest margin expansion.