When will labour market strength JOLT Treasuries higher?
The labour market in the US shows little sign of weakening, despite the huge number of jobs already created this year.
Insights Topic
Government Bonds
The Rodney Blog 2022: Policy, economy and markets must converge
What we are currently experiencing is a disconnect between monetary policy, the economy and the markets, a disconnect that in our view will struggle to survive much longer.
How swaps can reduce rates risk as we move towards tightening
With rising government bond yield curves one of the biggest concerns for fixed income fund managers going into 2022, Eoin Walsh points to interest rate swaps as one option for reducing the rates risk of a portfolio without impacting its credit exposure.
Did the BoE surprise, or were you just not listening?
So that’s the banks, rates, swaps and currency traders that all apparently got the wrong end of the stick. Explaining how you might arrive at a future monetary policy decision is a challenging and fine balancing act, but as Governor of the Bank of England that is of course one your jobs.
A big week for rates with the BoE centre stage
Following a turbulent week for rates markets, Eoin Walsh outlines what investors can expect as the Bank of England and other central banks meet this week.
Navigating The New Bond Volatility
This looks to us like a buy-into-the-dip opportunity, but investors should be wary of taking on too much rate sensitivity as the move in risk-free curves is likely to persist until the rate hike cycle is actually on the way.
Why BoE Hiking First May Be Best for Bonds
In the last month, global government bond curves have had a torrid time, with significant steepening seen across US Treasury, UK Gilt and German Bund yields.
Rates Become The Source of Risk Again
From time to time, Treasury yields actually become the source of risk for financial markets.
Should Investors Fear a Hawkish Tilt?
On Wednesday, the Fed moved one step closer to tapering and even put quite a clear timeframe for it, while on Thursday, the Bank of England openly talked about rate hikes.
Stagflation – Probable or Panic?
Our base case is for a continuation of quite high growth and a modest inflation overshoot. For bond investors, positioning for stagflation could be a dangerous trade if that base case bears out
For Bonds, Q4 Will Present Similar Challenges to Q1
As we rapidly descend upon the fourth quarter of this extraordinary year, we think some of the risks fixed income investors faced back in Q1 will rear their heads again before the end of 2021.
Curb Your QE
Whether the Bank of England halts all purchases in August or merely begins to slow the pace of purchasing later in Q4 this year, by 2022, less technical support will exist for gilts.