Overnight, the Reserve Bank of Australia (RBA) cut the cash rate target by 25bps to 3.85%, as widely expected. After this cut, the market still prices in about 50bps of easing over the next six months. According to our Global…
Although Canada’s headline CPI slowed to 1.7% y/y from 2.3% on Tuesday, most measures of underlying inflation surprised to the upside, thus raising the likelihood that the Bank of Canada (BoC) will stay put at its next meeting in…
Banxico’s 50 bps rate cut reinforces our bullish view on Mexican bonds, with easing likely to continue as inflation falls and growth slows. The central bank unanimously lowered its policy rate to 8.5%, and we expect further cuts…
The US-China trade truce lifted short-term manufacturing sentiment in May, but margin pressures persist, reinforcing the case for defensive, domestic-focused equity positioning. The Empire and Philly Fed regional manufacturing…
Tariff front-running behavior makes the April hard economic data difficult to interpret, but we take the strong reading from Food Services spending as a signal that the US consumer has not yet buckled.
Expect broad-based dovish surprises from major central banks, and stay overweight UK and euro area government bonds. Our Global Fixed Income, European, and FX strategists published a joint update of BCA’s Central Bank Monitors. They…
A weakening economy will apply downward pressure to Treasury yields, but the Trump term premium will keep long-dated yields higher than they would otherwise be. This makes Treasury curve steepeners the most attractive trade in US…
The easing bias remains, but not all central banks are equal. This Central Bank Monitor update reveals who is ready to cut more and who is still pretending not to.
Q1 earnings point to risks for goods-focused sectors, reinforcing our US Equity strategists’ call to overweight services, upstream names, and domestic plays. With most S&P 500 companies having reported Q1 2025 earnings, the…