In October 2019, Chile experienced its most serious social upheaval since the end of military rule. A seemingly minor increase in Santiago’s metro fares sparked widespread protests, rapidly escalating into nationwide unrest driven by deep-rooted social and economic inequalities.

In theory, the reform of the Dutch pension system from defined benefits to a defined contribution could be a shadow hanging over the longer end of European interest rate curves. But even there, we have known for numerous years that this reform was going to happen. Over those years, this reform has been used as an easy explanation for interest rate moves, especially when no other clear catalyst was available.

Recent policy developments in the United States, particularly those related to inflation and long-term debt sustainability, have brought significant implications for global fixed income markets. With the fiscal outlook becoming increasingly strained, it is an interesting moment to assess how markets are reacting and how investors should position themselves in the current environment.