FW: RHB | Fixed Income & Currency Research | Modestly Impacted By The US Government Shutdown

 

 

Economic Research	22 January 2018
Fixed Income & Currency Research
FIC Research: Modestly Impacted By The US Government Shutdown     While the US Government is effectively in a shutdown, we do not believe that it will affect economic growth over the medium term. Nor is it likely to have a significant impact on markets. In the meantime, the knee-jerk reaction that resulted from the potential softness in the USD could give investors an opportunity to engage in tactical buying on dips, as the markets may reverse their direction when investors gain further clarity over the issue. The 10-year US Treasury yields may test the 2.7-2.75% target, lifted by anxieties over funding issues, as the debt ceiling for the government needs to be raised by March. Over the medium term, however, inflation is a key matter to look out for, as there may be some upside surprises in store.   Arup Raha  | +65 6232 3896 Chang Wai Ming  | +603 9280 2181 Nicolas Sopel  | +65 6232 3874

 

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