Bonds - Financial Daily News Site

ECB chief Lagarde also confirmed that it’s July rate-hike plan was proceeding

ECB chief Lagarde also confirmed that it’s July rate-hike plan was proceeding

Notes/Observations -Risk appetite gained traction as it fed off the news that China halved the quarantine time for international travelers. Beijing and Shanghai declared zero Covid cases for the first time in months. Shanghai Disneyland set to reopen on June 30th. -Global macro revolved around the G7 and NATO meetings as a comments from officials … Read more

Focus continues to be on central banks’ rate path

Focus continues to be on central banks' rate path

Notes/Observations -European economic data continues to miss expectations as Spain GDP and mortgage lending, Hungary wages, Turkey capacity and confidence, Czech confidence, Italy confidence, Germany IFO survey and UK retail sales all came in worse than forecasted. -As Finland and Sweden markets close for Midsummer’s Eve holiday, the UK and Germany take focus with light … Read more

Weak PMI readings for Europe add to recession concerns

Weak PMI readings for Europe add to recession concerns

Notes/Observations – Central banks continued to hike to address inflation (Philippines, Norway in session). Moves recirculate recession concerns and raise second thoughts over rate path trajectories. – Collection of interest rate decisions this morning with both Norway and Philippines hiking 50bps and 25bps respectively, citing inflation as the fundamental target. Indonesia Central Bank left rates … Read more

Quiet start to week, US market closed for holiday

Quiet start to week, US market closed for holiday

Notes/Observations – Quiet EU morning session as the US markets are closed for Federal holiday. – Slowing in US economic momentum cast some doubt over interest rate rise expectations for the Fed. – While liquidity is reduced, risk appetite has crept back in slightly. Asia closed mixed, with Nikkei225 underperforming at -0.75%. EU indices start … Read more

BOJ sticks with its yield control

BOJ sticks with its yield control

Notes/Observations – Risk aversion takes a short break as sentiment continues to pivot around inflation and growth concerns. – EU Finance Ministers meet (EcoFin) and trying to get an agreement on the elusive global minimum tax. – BOJ defies speculation it would follow its global peers and move toward tightening; no plans to raise ceiling … Read more

SNB delivers a bombshell rate hike, risk aversion sentiment percolates

SNB delivers a bombshell rate hike, risk aversion sentiment percolates

Notes/Observations – Central banks continued to hike to address inflation concerns. – A surprise 50bps raise in key rates by Swiss Central Bank (SNB) marks the first hike in 15 years and sends the SMI tumbling and CHF currency higher. Comments from SNB President Jordan cite that inflation is spreading to goods and services that … Read more

Vanguard: 60% Stock-40% Bond Portfolio Isn't Dead – TheStreet

Vanguard: 60% Stock-40% Bond Portfolio Isn't Dead - TheStreet

With stocks and bonds now falling at the same time, the question has arisen as to whether the 60-40 portfolio still makes sense. Of course, 60-40 refers to a 60% stock weighting and a 40% bond weighting. As for market movements, the S&P 500 stock index has slumped 18% so far this year amid roaring … Read more

Should You Be Looking at Bonds Rather Than Stocks? – TheStreet

Should You Be Looking at Bonds Rather Than Stocks? - TheStreet

With the S&P 500 index having dropped 18% this year, conventional wisdom has it that you should take advantage of the opportunity to buy stocks at bargain prices. But at least for investors over 60, you can make a case for buying bonds — bonds you will hold to maturity, that is. Stocks can bounce … Read more

Risk appetite slips as bond yield rise

Risk appetite slips as bond yield rise

Notes/Observations – Inflation concerns and rising bond yields weighing upon risk appetite (**reminder: US CPI data due Friday). – Risk appetite has fled while the reality of central bank actions takes a grip yet again. – German April Factory Orders weakened materially in the wake of Russia’s invasion of Ukraine. – UK final PMI surprised … Read more

EU bond yields continue to rise on inflation concerns

EU bond yields continue to rise on inflation concerns

Notes/Observations – Swiss CPI remain above target for the 4th straight month (2.9% v 2.6%e). – Size of the 1st ECB rate hike seen debated as uncertainty over the economic outlook and its commitment to gradualism. – UK markets closed for Thurs and Fri for public holiday (Queen’s 70th Jubilee). – Focus turning to US … Read more