Yesterday, BCA Research's Global Fixed Income Strategy service concluded that among the major countries without negative interest rates (the US, UK, Canada, and Australia), longer-term borrowing rates do not need to fall…
The UK labor market has been hit by a 2% contraction in the GDP in Q1. The claimant count rose by 856 thousand individuals and the claimant count rate rose to 5.8%. Moreover, weekly wage growth continues to weaken, which is a…
Highlights Inflation-Linked Bonds: The plunging price of oil has put renewed downward pressure on global bond yields via lower inflation expectations. With oil prices set to recover over the next 6-12 months as the global economy…
Highlights The pillars of dollar support continue to fall, but the missing catalyst is visibility on the trajectory of global growth. For now, we remain constructive on the DXY short term, but bearish longer term. Market internals…
Highlights Policy Responses: The COVID-19 pandemic has become a full-blown global crisis and recession. Governments and central bankers worldwide are now responding with aggressive monetary easing and fiscal stimulus. Markets will not…
The Bank of England followed on the path of the Fed and executed a 50bps inter-meeting interest rate cut. Markets did not feel relieved. Instead, they sold off, a move that continued after the WHO declared COVID-19 a pandemic…
Highlights Uncertainty & Yields: Global bond yields, driven to all-time lows as investors seek safety amid rioting markets, now discount a multi-year period of very weak global growth and inflation. Bond Portfolio Strategy:…
Highlights The elevated uncertainty about global growth stemming from the COVID-19 virus in China has not only made investors more anxious, but central bankers as well. This means that, only six weeks into the year, policymakers may…