We continue to believe that financial markets are far too complacent on the possibility that inflation may rise and consequently remain stubbornly sanguine with respect to the Fed and higher interest rates. This has seen a substantial flattening of the yield curve and although the trend towards flattening is something that may persist through 2018, for now, we see scope for the 10-year point on the curve to underperform, should the 2017 trading range be broken to the upside, leading volatility to rise.

Mark Dowding Bluebay asset management

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he release of the Republican tax reform framework last week has breathed new life into the reflation trade that sprung to life in the second half 2016

Douglas Adams