ISMS 15: Top 5 DM Country Interest Rates – Steep US Inversion

<h2><strong>Developed Countries - Vast DM Country increases in ST and LT rates, Japan stays an outlier, US looks worst based on yield curve inversion</strong></h2><h3><strong>Interest rate overview</strong></h3><ul><li>US 3m yield 4.9%,&nbsp;Japan -0.3%,&nbsp;Germany 2.6%,&nbsp;UK 4.1%,&nbsp;France 2.8%</li><li>US 1yr yield 4.7%,&nbsp;Japan -0.1%,&nbsp;Germany 2.9%,&nbsp;UK 4.0%,&nbsp;France 3.0%</li><li>US 10yr yield 3.6%,&nbsp;Japan 0.3%,&nbsp;Germany 2.3%,&nbsp;UK 3.5%,&nbsp;France 2.8%</li></ul><br/><h3><strong>Year-on-year changes</strong></h3><ul><li><strong>3m yield in US up the most YoY as it started the interest rate hike</strong></li><li>USA 3m yield was up 4.4ppts,&nbsp;Japan down 0.2ppts,&nbsp;Germany up 3.2ppts, UK up 3.5ppts, France up 3.4ppts</li><li><strong>1yr yield has risen significantly in developed countries; only Japan’s yield didn’t move</strong></li><li>USA 1yr yield was up 3.1ppts,&nbsp;Japan down 0.1ppts,&nbsp;Germany up 3.3ppts, UK up 2.7ppts, France up 3.5ppts</li><li><strong>10yr yield grew in all developed countries YOY, even in Japan</strong></li><li>USA 10yr yield was up 1.2ppts,&nbsp;Japan up 0.1ppts,&nbsp;Germany up 1.8ppts, UK up 1.9ppts, France up 1.8ppts</li></ul><br/><h3><strong>Rate progression</strong></h3><ul><li><strong>3m yield has risen steepest in the US</strong></li><li>Germany, UK, and France 3m yield follows US, but with a delay</li><li>Japan remains an outsider and continues with its negative interest rate policy</li><li><strong>1yr yield in developed countries moved up aggressively</strong></li><li>However, in March 2023, US 1yr yield dropped for the first time in 12 months</li><li>Other developed countries also saw a slight fall recently</li><li><strong>10yr yield has risen in all developed countries, but starts to show flattening behavior recently</strong></li><li>Since October 2022, the 10yr yield among the developed countries hasn't moved much and stayed flat</li></ul><br/><h3><strong>Yield curve</strong></h3><ul><li><strong>3m yield curve inversion in the US