Bond and currency markets as context for risk assets.
| Concept | Explanation | |---|---| | Yield curve | Interest rates across different maturities. | | Curve inversion | Short-term yields exceed longer-term yields. | | Credit spread | Extra yield demanded over a lower-risk benchmark. | | Spread widening | Credit risk or risk aversion increases. | | Reserve currency strength | Can tighten global financial conditions and affect commodities and risk assets. | | Currency translation | Exchange rates alter multinational revenues and returns. |