A calmer bond market is helping drive stocks higher around the world

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Waning volatility in the bond market is helping steady equity markets the world over, according to the latest research note from Deutsche Bank's Jim Reid.

Waning volatility in the U.S. bond market has helped spur a rally in stock markets around the world, according to the latest research note from Deutsche Bank’s Jim Reid.

See: ‘You can be invested in fixed-income again,’ bond investors say, even before the Fed stops hiking rates The 10-year Treasury yield TMUBMUSD10Y has fallen by roughly 50 basis points since the end of October as inflation has pulled back from peak levels and as the Fed has signaled plans to hike interest rates by smaller increments.

According to Reid, investors the world over owe their good fortune in part to growing certainty that the fed-funds rate isn’t expected to go much higher than 5%.

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