Highlights Global Tapering: The Bank of England has joined the Bank of Canada as central banks tapering the pace of bond buying. Markets are now trying to sort out who is next and concluding that it will not be the Federal Reserve,…
Australia’s NAB Business Survey was extremely strong in April, which indicates that the domestic recovery continues to gather pace. Both the Business Confidence and Business Conditions indices surged to fresh all-time highs…
As expected, the Reserve Bank of Australia kept policy unchanged at its Tuesday meeting. However, a stronger than expected recovery prompted the central bank to upgrade its economic outlook. The RBA revised up its GDP forecast to…
Highlights Higher copper prices will follow in the wake of China's surge in steel demand, which lifted Shanghai steel futures to an all-time high just under 5,200 RMB/MT earlier this month, as building and infrastructure projects…
Highlights Q1/2021 Performance Breakdown: Our recommended model bond portfolio outperformed the custom benchmark index by +55bps during the first quarter of the year. Winners & Losers: The government bond side of the portfolio…
Highlights Central Bank Expectations: Market expectations of short-term interest rate moves over the next few years are inching higher. The potential for markets to offer a greater bond-bearish challenge to the current highly dovish…
Highlights Global Duration: Markets are correctly interpreting the $1.9 trillion US fiscal stimulus package as a factor justifying higher global growth expectations and bond yields. Maintain a below-benchmark stance on overall global…
Dear client, In addition to this week’s abbreviated report, we are also sending you a Special Report on currency hedging, authored by my colleague Xiaoli Tang. Xiaoli’s previous work mapped out a dynamic hedging strategy for…
As expected, the Reserve Bank of Australia kept policy unchanged at its Tuesday meeting, maintaining the 10-basis point targets for the cash rate and the yield on the 3-year government bond. The RBA reiterated its commitment…