Highlights Duration & Country Allocation: Global bond yields have been driven by growth and inflation expectations over the past year, but shifting policy expectations are now the more important driver. Tighter monetary policies…
Highlights The 26th Conference of the Parties (COP26) will open this weekend in Glasgow, Scotland, amid a global crisis induced in no small measure by policies and regulations that led to energy-market failures. Price-distorting…
UK 10-year government bond yield fell by 12.8 bps on Wednesday, leading the rally in global long-dated sovereign bonds. The proximate cause of the decline in long-dated Gilt yields is the release of the UK budget which revealed…
Highlights Bank of Canada: Rising inflation, high capacity utilization, and monetary policy constraints will force the Bank of Canada to taper further and move up the timing of its first rate hike to H1/2022. Stay underweight Canadian…
UK retail sales dropped in September, with the measures including fuel as well as excluding fuel falling more than expected. Both the month-on-month series as well as the year-on-year ones declined. Meanwhile, the GfK Consumer…
Highlights Energy Prices & Bond Yields: Surging energy prices are lifting inflation expectations in the US and Europe, while at the same time dampening consumer confidence amid diminished perceptions of real purchasing power. These…
Over the weekend, commentary by Bank of England governor Andrew Bailey raised the likelihood that the central bank will raise the Bank Rate before year-end. Bailey highlighted that inflationary pressures will force the BoE to act…
Dear Client, There will be no weekly report next week. Instead, we will host our quarterly webcast on Tuesday, October 26 for the US and EMEA regions and Wednesday, October 27 for the Asia Pacific region. We will resume our regular…
According to BCA Research’s Foreign Exchange Strategy service, the pound could relapse versus other G10 currencies in the near term. However, it is likely to fare well over a cyclical horizon. Their 12-month target for GBP/USD…
Highlights UK GDP is on track to overtake pre-pandemic levels. This will strengthen the case for the BoE to tighten monetary policy. That said, markets are aggressively pricing in a hawkish BoE. This creates room for near-term…