Global bond yields were up (again) on Friday, weighing down on growth stocks (again). Once more, the proximate cause of the bond selloff was good news. This time it was President Biden’s optimistic vaccine outlook. Much…
Highlights With the vaccination campaign in full gear and plenty of fiscal support in the pipeline, investors have swung from worrying that the US economy will grow too slowly to worrying that it will grow too fast. Thanks to the…
Please note that we will be presenting a webcast on Thursday March 11 at 10:00 AM EST for the Americas and EMEA regions and on March 12 at 9:00 HKT/12:00 AEDT for APAC clients. We will be discussing macro themes and investment strategies…
Highlights China’s economic recovery is in a later stage than the US. A rebound in US Treasury yields is unlikely to trigger upward pressure on government bond yields in China. Imported inflation through mounting commodity and…
According to BCA Research’s US Bond Strategy service, only two of the five milestones on their Checklist For Increasing Portfolio Duration have been reached. Thus, a below-benchmark portfolio duration remains appropriate…
Highlights Duration: Only 2 of the 5 items on our Checklist For Increasing Portfolio Duration have been checked. We will heed this message and stick with below-benchmark portfolio duration for the time being. We will have an…
The US 10-year Treasury yield had climbed 16 basis points so far this month, alarming equity investors. March’s selloff to date follows a 35 basis point rise in February – the deepest monthly bond rout since…
Highlights The recent backup in bond yields could cause stocks to fall further in the near term. However, history suggests that as long as yields remain low in absolute terms, as they are now, equities will recover. Market angst that…
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…