2022 has already begun with a flavour of what we expect will be the story also ahead. USD rates rose markedly on the first trading week of the year across the curve, see Chart 1. US corporations’ bond issuance has increased with companies rushing to benefit from the still historically loose financial conditions. Moreover, the resolution of the debt ceiling has led to renewed borrowing by the US Treasury. Both factors have supported higher rates. {chart} The real shock for bond markets, however, came with the Fed’s December minutes. The minutes suggest that the American central bank is eager to swiftly unwind the ... (full story)