The Volatility Cycle and Mexico Might Raise Rates May 17, 2021 The Volatility Cycle and Mexico Might Raise Rates By Erik Norland, Senior Economist, CME Group End of the Volatility-Yield Curve Cycle? U.S. yield curve steepened slightly in 2021 but remains flat by historical standards. Flat yield curve at the start of growth cycle could be due to quantitative easing. Yield curve could steepen amid growing budget deficit, robust economic growth. Mismatch between debt issuance and Fed buying could also steepen yield curve. Read Article Mexico’s Inflation Edges Higher Mexican economy remains 4% smaller than before the pandemic. Mexico’s core inflation has topped central bank’s overnight rate. Interest rate markets expect rates to rise 50 basis points August-October 2021. With growth still slow, does Bank of Mexico have the latitude to raise rates? Read Article SEE MORE ANNOUNCEMENTS