The FX G10 attractiveness model continues to favor the US dollar, but the tide could shift in the coming weeks. Currencies such as the NOK, CHF and even CAD have been rising in rankings in recent months. Using an aggregate of…
As expected, the Bank of England kept its bank rate unchanged at 5.25% at Thursday's MPC meeting with six members voting in favor of the decision and the remaining three preferring a 25bps rate increase. Governor Andrew…
According to BCA Research’s US Bond Strategy service, while economic growth will be a much more important driver of Treasury yields going forward than supply, the Treasury department did make several announcements on…
In financial systems, cracks typically begin on the periphery and then expand to the center. Hence, the ruptures on the fringes often act as an early warning. These fissures tend to widen and spread to the core, causing a breakdown…
As expected, the Fed stood pat at its Wednesday meeting, maintaining the target for the fed funds rate at 5.25-5.50%. The minimal changes made to the Fed Statement were to emphasize the strong pace of economic activity in Q3, to…
The broad-based selloff continued in October. Fixed income markets performed particularly poorly as stronger-than-anticipated US economic data generated upside pressure on long-dated bond yields in the US and, to a lesser…
Our reaction to today’s FOMC meeting and the Treasury’s Quarterly Refunding Announcement.
The fundamental component of long-term inflation expectations has climbed to its highest level since 2008 in both the US and the euro area. This means that both the Fed and the ECB will need to engineer inflation to undershoot 2…
High interest rates will eventually cause growth to slow. Signs of stress are already starting to show. Stay cautiously positioned.
We maintain our view that China’s economic growth in the coming months will remain lackluster. Beijing's recent measures to provide additional financing may help to bridge the gap in government spending in the rest of 2023 and into…