Local Peak for Long-End Behind, Next One Is Likely Ahead -- Market Talk

0535 GMT - A local peak in long-end yields may be behind us, but the next one is likely still ahead, Societe Generale rates strategists say in a note. "A hawkish European Central Bank and Federal Reserve should reassure investors questioning central banks' inflation-fighting credibility," they say. The Bank of England's decision to pause and slow quantitative tightening sparked a gilt-led rally at the long end, while next week's Trump-Xi meeting could further support risk sentiment, they say. "However, the global rebuilding of term premia is not yet complete, and markets still have scope to price a more aggressive path of central bank rate hikes," according to the French bank's rates strategists. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

September 18, 2026 01:35 ET (05:35 GMT)