In countries such as Germany, the United Kingdom, and Australia, 5-year government bond yields are above pre-COVID levels.

Here, worries about inflation are causing interest rates to rise in various countries.

I will check the interest rates of each country.

Speaking of the 10-year yield, it is likely to include not only the current economic cycle but also the next cycle, so attention should be on the current economic cycle, the 5-year and 2-year yields that reflect the immediate inflation concerns.

First, the 5-year yield,

New Zealand’s interest rates are rising sharply. It is difficult to take a short position on the Kiwi (NZD).

The focus is on Germany, the United Kingdom, Australia, and New Zealand, where the 5-year government bond yields are above the pre-COVID end of 2019 levels.

The backdrop is inflation concerns driven by the energy shock.

If the United States finds itself in a similar situation, it could have a significant impact on the stock market as well.

Looking at the 2-year yield, UK rates are rising sharply. There is probably strong inflationary pressure in the UK. The sterling is also difficult to take a short position on.

Amid this, the yen’s interest rate fluctuations are small. It reflects the yen’s relative weakness on its own.