FLGV - AI And Govt Bond Yields - Onwards And Upwards?
2024-06-19 08:45:00 ET
Summary
- AI may have important implications for other markets, notably fixed income, via the level of interest rates and bond yields.
- Turing to the impact of AI on productivity growth and yields, the overall effect on the labour market depends on whether the displacement effect on jobs, in reducing employment, exceeds the re-instatement effect of new jobs being created, and the timing.
- Caution is required in drawing inferences from the Goldilocks era.
Much of the market focus on generative Artificial Intelligence ((AI)) has been on potential productivity gains and equity market impact. But AI may have important implications for other markets, notably fixed income, via the level of interest rates and bond yields, which we address in this short note. ...
AI And Govt Bond Yields - Onwards And Upwards?