00:00We've seen treasuries at least retreat a little bit from the melt-up in yields since this war began.
00:05Do you think right now, how concerned are you on really inflation?
00:09Yes, for the near term, we should continue to see pressure, particularly oil at $100 or higher.
00:16So I think that's the key doubt, and that's why we are seeing, you know, the fixed income repricing higher
00:22yields across the board.
00:24In the case of U.S., the market is still biased for a cut.
00:28You know, it's not an entire cut priced in for this year, but that's how the market is biased.
00:35But I think the key thing to highlight is that in Asia is the opposite.
00:40We have most of the central banks in Asia pricing hikes.
00:45That's what the market is telling us, you know, like three hikes in South Korea or four hikes in India,
00:53you know, two hikes in Australia.
00:54So most of the central banks now, we have the market expecting hikes.
00:58So I think that's the sort of asymmetry that is more benign the way we see it in Asia fixed
01:05income, in the local space.
01:07Because we are sort of priced for the stress, meaning even if oil stays relatively high, the market is already
01:16there, which is we think that in most of the risk assets, the interpretation is more benign.
01:22I think that, say, the equities or the credit market is sort of looking through, and that's why spreads are
01:29very tight and equities in general at elevated levels.
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