Sovereign Debt
The most bullish development for Brazil from the weekend’s elections was not the higher odds of a right-wing presidency, but the likely president’s (Flávio Bolsonaro) stronghold in Congress. Upgrade Brazilian fixed-income markets to overweight and equities to neutral within their respective EM portfolios.
MoF and the US Treasury stepped in together to defend the yen, but even joint intervention cannot reset the fundamentals still weighing on the currency. Washington's pursuit of its own incentives, meanwhile, offers another glimpse of a more activist US Treasury.
Stablecoins are evolving from a niche crypto instrument into a macro-relevant financial layer. This Special Report maps the transmission channels and consequences for the Treasury market, bank funding dynamics, and the dollar’s global footprint.
This week’s US Bond Strategy Special Report takes a look at the two most provocative papers presented at last month’s Jackson Hole conference.
