SAA Monthly Investment Update: February 2024

Global stock markets gained in February with emerging markets performing strongly as Chinese shares experienced a rebound. By contrast, fixed income market yields were generally higher as investors pushed out the timeframe for central banks to cut interest rates.

Major global government bond market yields increased across the board, with the US 10-year yield rising by 29 basis points to 4.24% and the German 10-year yield by 24 basis points to 2.40%. The market continued to anticipate interest rate cuts, although not immediately as labor markets remained strong and inflation data surprised to the upside.

With lower rate expectations along the short-end of the yield curve, especially, organizations may want to review their cash positions for longer-term deployment.