This presentation looks at global economic conditions and the key drivers of long-term interest rates in the U.S., euro zone, and Japan. In particular:

• Long-term interest rates in advanced countries are quite low. In some countries, interest rates are even negative.
• Long-term interest rates will remain low in the major advanced countries & regions in 2019 because of several reasons.
• Major central banks, such as the Fed, the ECB, and the BOJ, will keep their policy rates low. Short-term interest rates will stay low.
• Inflationary pressures are subdued. Inflation expectations are contained.
• The pace of economic activity in most major economies is moderate.
• The balance sheets of the major central banks shall stay elevated in 2019 and beyond.