top of page
  • Writer's pictureEdward Ballsdon

2 additional risks for Fixed Income

Updated: Apr 10

RESEARCH CONTENT


Beyond stronger than expected economic data and central bankers surprising with their hawkishness, there are two other important risks to a positive performance of fixed income markets:

 

  • Deteriorating government finances

  • A rise in commodity market prices

 

This research provides updates on recent data on US government finances, demonstrating the continued challenges for the market to digest the enlarged government bond supply. Market internals suggest the risks are currently heightened, as the 2s10s curve has not bear flattened this year as rate cuts were removed from the front end.


The report also highlights the risks to markets should commodity prices break some not-too-distant key resistance levels.

52 views0 comments

Recent Posts

See All

"SRY"s, cross market yield spreads and FX implied vol

RESEARCH CONTENT This research breaks down the historical post 2014 changes in "Simple Real Yields" of 6 countries into 4 stages, contrasting the moves against inflation and economic surprise indices.

The deleveraging US consumer and implication for yields

RESEARCH CONTENT Personal Consumption Expenditure (PCE) makes up approximately 68-70% of the US’s GDP. Probably in large part due to tighter monetary policy and the high cost of debt, it should not co

Sweden - an in-depth analysis

RESEARCH CONTENT A comprehensive research report on the macroeconomic situation in Sweden, which has one of the most indebted private sectors amongst Advanced Economies that is currently undergoing a

Comentarios


bottom of page