Bonds Analysis & Comment

Summary It’s now ‘officially’ a dollar comeback week. It looks like stock markets are beginning to reflect this. FTSE MIB clings to thin weekly rise Judging by the pattern for most...

There is something inherently wrong with this market. In a healthy market, stocks and bonds maintain a negative correlation. When stocks rise bonds tend to fall, and vice versa. The logic is simple....

Summary Lasting changes to risk appetite might be showing. Tail of the yield spike Stock markets declined to immediately rush on to the front foot during an 11 hour pause in Treasury selling. A...

Analysts are attributing the increase to a strong US economy, hawkish Fed comments, technical factors or even possible demand for return premia. Yet, significant corporate issuance, higher dollar...

The biggest story in the markets right now is that benchmark government bonds are getting absolutely hammered, lifting yields across the developed economies. In essence, it is the unwinding of the...

A booming US economy and comments from Fed chairman Jay Powell last night appear to have been the catalyst for a sharp move higher in US 10-Year yields through the highs this year of 3.12% to push up...

The big news on Tuesday is that Italian bond yields are lurching higher once more and have tested the air above 3.4% earlier today. This is spooking the markets, with European stocks a sea of red and...

Italy’s new government faces its first real test today: can the fragile coalition of radicals and centrists present a coherent budget that is palatable to the EU and won’t break the bank?...

The US treasury curve has garnered significant attention, especially on the ‘curve inversion’ where the short-end of the curve yields is higher than the long(er) end. What has the market...

We are now in a firmly hiking environment, unless something derails the US economy in the coming months. The US treasury curve has been flattening, with 2y:10y reaching new lows. That being said, with...

During today’s monetary policy meeting, the Bank of Japan (BoJ) confirmed it will maintain its short-term policy interest rate at -0.10% 'for an extended period of time', unchanged since 29....

Europe It’s been a broadly negative day for markets in Europe today, as trade tensions reassert themselves after the EU announced it was preparing countermeasures to further US tariffs and it...

The yield spread between 10yr BTPs and Bunds widened 114bp in May Populist and anti-EU politics were the catalyst for this repricing of risk Spain, Portugal and Greece all saw yields increase as Bund...

European political uncertainty spiked volatility in sovereign bond markets and the euro Hawkish emerging market monetary policy attempts to alleviate local FX havoc and inflationary concerns Chances...