UK gilts have sold off sharply over the past month, particularly at the short end of the yield curve. The two-year yield has risen by over 100bps since mid-May, while 10-year yields have increased by just over 70bps –…
The US May PPI report indicates that pipeline inflationary pressures are cooling. Headline PPI inflation fell from 2.3% y/y to 1.1% y/y – below expectations of 1.5% y/y and the lowest since December 2020. PPI for final…
US equity market moves have recently shifted in favor of small caps. After underperforming the S&P 500 by 16% between the start of March and beginning of June, the S&P 600’s recent 6% gain is greater than its large-…
The message from the ZEW economic research institute’s June survey was mixed. On the one hand, the German Indicator of Economic Sentiment unexpectedly ticked up from -10.7 to -8.5. While the negative reading indicates that…
China’s money and credit update for May continues a string of disappointing Chinese data releases. The CNY 1.56 trillion increase in total social financing fell below expectations of a CNY 1.90 trillion rise. Similarly, the…
With the 1-year CPI swap rate trading at 2.3%, the market was already priced for a significant drop in inflation heading into yesterday’s May CPI release. The results of the report should only reinforce those expectations…
In our May In Review Insight, we highlighted that last month, industrial metals generated the largest abnormal losses among the major global financial assets we track. This continues a downtrend that started at the beginning of…
According to the Exposure Index compiled by the National Association of Active Investment Managers (NAAIM), active risk managers are increasing their net exposure to equities. The range of responses to the weekly survey…
Investors and policymakers went on high alert after two large-cap banks, Silicon Valley Bank and Signature Bank, failed in a 48-hour span in early March. Google searches for “banking crisis” exploded in the two full…
Results of the New York Fed’s Survey of Consumer Expectations sent a positive signal about short-term inflation expectations. Median one-year-ahead inflation expectations dropped by 0.3 percentage point to a two-year low of…