Archive for: March, 2021

Weekly Market Update

Post date: 29/03/2021 11:53 The move lower in the euro that we have been anticipating during most of March so far began to reassert itself again last week. With virus cases rising and lockdowns either being extended or reintroduced in most of Europe’s major nations, investors are growing increasingly pessimistic about the bloc’s near-term outlook.…

Read More →

Weekly Market Update

Post date: 22/03/2021 13:02 Last week, the Federal Reserve reiterated its openly inflationist stance when Chair Powell insisted that rates will stay at zero even if inflation overshoots the target. Treasury bonds continued to sell-off as market expectations of inflation rose to eight-year highs. Remarkably, risk assets and emerging market currencies took the events relatively…

Read More →

Weekly Market Update

Post date: 15/03/2021 13:07 While investors pay increasing attention to the rising volatility in rates markets, currencies continue to trade off risk appetite and commodity prices, primarily. The historical correlation between higher yields on US treasuries and a stronger dollar is not quite asserting itself as of yet, remarkably. European yields actually went down for…

Read More →

Weekly Market Update

Post date: 08/03/2021 11:01 The severe sell-off in the US Treasury market accelerated last week as economic news continues to suggest a fast improving economy and the massive Biden stimulus package secured approval in the US Senate. While the short end of the interest rate curve remains securely anchored by the Fed’s explicit promise to…

Read More →

Weekly Market Update

Post date: 01/03/2021 10:47 The wild week in bond markets had a clear spill over into foreign exchange last week. A poor auction of Treasury bonds in the US was the proximate catalyst for a sharp move higher in yields. Bond investors have clearly been spooked by the combination of inflation-friendly monetary policy and the…

Read More →

Back to Top