Signet Bank Market Review 09/2022
Autumn is traditionally perceived by market participants as a season of possible crises and amplified volatility. In September neither geopolitics nor central banks added stability to the markets, quite on the contrary, working hard to increase overall nervousness. The only good news in September was that the month finally ended. We saw currency pairs setting new records and interventions in forex market, yields skyrocketing and equity markets hitting new lows. Central banks were having busy days hiking interest rates, while market participants were keen to price in even more aggressive hikes by the end of the year. We expected US yield curve to become even more inverted and were right as short-term yields rose more than those of longer maturities, though in absolute terms all yields were rising stronger than we thought they would.