Bonds Analysis & Opinion

Bond yields have fallen sharply in recent days. Most of the drop can be attributed to a collapse in real yield, as today’s chart shows. Since the beginning of this month, the US real 10-Year...

Another day, another dollar. The race to the bottom continues for government bond yields after the Reserve Bank of New Zealand became the latest major central bank to shift from neutral to dovish...

Investors remained on edge Monday but the whiff of panic that spurred Friday’s equity plunge was gone. Stocks closed mixed even as the inversion on the yield curve between 3-month and 10-year...

The continued effects of US yields can be felt across the entire asset class today. Following Friday, we are seeing risk sell-off in FX, equity indices and bond yields. The FX risk basket of TRY, BRL...

10-Year Treasury yields rose for the first time in more than a week today, up two basis points to 2.65 percent. The boost came as investors sold off Treasurys after Fed Chair Jerome Powell said in an...

The economies of France and Germany are slightly recovering. Italy’s annual GDP figures indicate a technical recession: mid-duration yields are starting to tick upwards with the 10-Year at...

As Brexit dominates headlines, it is not dominating investors. UK 2-Year and 10-Year gilt yields rose slightly to +0.825% and +1.287% (+2.46% and +2.30% percentage change) while the British pound...

Twelve months ago the main concern for markets was about what a US Federal Reserve with Jay Powell as its newly appointed chair might do with respect to US rates throughout 2018. Expectations of a US...

Summary Coordinated signals, subtle and vague from the leaders of Italy’s coalition government, are underpinning European stock markets again. Italian coalition blinks The mood—which is...

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...