The previous week marked a significant shift in market sentiment regarding expectations of a Federal Reserve (Fed) rate hike. The latest Consumer Price Index (CPI) update revealed a slower-than-expected inflation rate in the US, along with politicians fending off a government shutdown. Despite these factors, the US 2-year yield tested 4.80% for a fourth time, … Read more
markets Until about a month ago, the market dynamics of earnings moved “standardly” higher on days when there were no relevant news for the market. A series of softer (or perceived soft) data has since caused the market to turn 180 degrees. The central bankers’ mantra of “higher for longer” has been shelved. The key … Read more
markets Curve inversion/overcoming the long end was the name of the game in the major bond markets yesterday. US yields advanced between 1.4bps (2y) and 11bps (30y). The US 10-year yield closed near the key 4.50% benchmark. German returns showed a similar picture. The 2-year still gained 3.1 bps, but the 30-year fell 8.1 bps. … Read more
markets Curve inversion/overcoming the long end was the name of the game in the major bond markets yesterday. US yields advanced between 1.4bps (2y) and 11bps (30y). The US 10-year yield closed near the key 4.50% benchmark. German returns showed a similar picture. The 2-year still gained 3.1 bps, but the 30-year fell 8.1 bps. … Read more