Bonds Analysis & Opinion

There has been a flood of selling in government bond markets all this week and it is starting to reflect more heavily on equity prices on Thursday. European equities are sharply lower and the Dow...

Rising yields and rising correlation in major bond markets – end of cycle or correction? European bond yields have risen following the lead of US treasuries Yield curves are steepening despite...

The recent spike higher in global bond yields is partly due to the bounce higher in the Oil price in recent weeks and rising expectations that inflation could start to build in the coming months. This...

Background Fixed Income investors have enjoyed more than 30 years of falling yields and rising prices. These are two sides of the same coin; if yields rise then prices fall or vice-versa. Industry...

Against a background of bearish sentiment for this week generated by a Bearish Shooting Star on weekly candle charts, Monday’s indecisive ‘Inside’ day was followed by a renewal of...

The Fed-Fund rates have been near zero for five years, along with the central bank implementing QE to the tune of over $4 trillion dollars (so far). The QE process looks likely to end in October 2014,...

Initial downside yesterday, and the failure of a subsequent bounce emphasised the underlying bearish tone for Dec German 10 YR Bunds. Despite a lack of net movement over the last 2 days it is the...

Last week saw the setback in the German 10 YR Bund from all-time highs deepen. A 2nd negative weekly performance in a row resulted – and the most aggressive decline of 2014. The daily Keltner...

An early setback for Bund Futures on Thursday proved more limited than expected before demand reasserted. The resulting upside kept Bunds near the top of a rising Keltner channel, supported by...

Wed’s renewal of demand for Bunds extended yesterday. This move to new contract highs and, importantly, yields of 1% kept prices ‘hugging’ the top of a positive Keltner channel....

Monday’s indecisive price action was followed by fresh demand. This move took German Bunds to new contract highs (and historically low yields) and back to the top of a positively trending...

There has been a net movement of 16-tics in Bund futures over the last 5 trading days. This lack of follow through in either direction cannot provide strong signals for sentiment. However, although...

Yesterday saw initial gains in German Bunds that approached last week's peak. Those levels were not reached however, and more than half of the initial upside was lost into the close. While the 13 day...

Recent consolidation in bunds was further emphasised by yesterday's unchanged close. The price range was narrow with initial highs and subsequent lows rejected. The market remains above the 13 day...