The surge in energy prices, crude oil and natural gas in particular, remains a dominant driver of global markets at the moment. Government yield curves in both the US and Germany continue to steepen on rising energy cost and inflation fears, even as short yields, particularly in Treasuries, begin to pull up anchor with the…
The biggest drivers in global markets right now are US politics and the surge in global energy prices. Against this backdrop, both bond yields and stock prices have come under pressure, and may very well continue to do so in the months ahead. US Congress is now working with timetables of October 18, the date…
“The larger the trade, the more likely it is to be done by voice. The deeper into high yield you go, the more voice, and the deeper into emerging markets, the more voice,” says Vuk Magdelinic, chief executive of Overbond. That makes it harder to apply artificial intelligence to the process behind pricing a significant portion…
Source: The Desk Overbond has added a ‘rich-cheap’ model to its suite of AI fixed income analytics, designed to help buy-side desks generate systematic returns. Combining both static and dynamic analysis of multiple factors with AI,the firm says its ‘rich-cheap’ model provides a quantitative method for screening for misprized fixed income securities. It is a…
A new report from analyst firm Aite-Novartica has found nearly a third of bond market participants and traders believe it is hard to justify the cost of data, given the additional value it provides. Source: The Desk In many cases, the inability to create clean data was to blame – a phenomenon that lives on…
Global bond yields are on the move higher, driven by fears of US Fed rate hikes since last week’s FOMC. Those concerns were further stoked by hawkish, less sanguine on inflation comments by Fed Chairperson Powell in front of his semi-annual Congressional testimony this week. The UK’s BOE has sounded similarly more aggressive in tone…
For financial markets, the week started with a blaze, as global stocks tumbled on Chinese real estate, Fed tapering, US budgetary & debt ceiling, and Covid variant jitters. The week ahead features Central Bank policy meetings out of the US, UK, Norway, Sweden, and Japan. The 2-day FOMC meeting ending with Powell’s press conference on…
German benchmark government yields were seen little changed on a week-over-week basis, as the ECB delivered enough of a dovish message to calm investor pending policy shift concerns. 10-year Bund yields rose only fractionally to -.31%, with a -8 basis point decline in real yields slightly more than offset by a +9 basis point increase…
We live in a strange time where much weaker-than-expected US nonfarm payrolls data on Friday sends stocks higher merely on the expectations for delayed tapering and lower rates for longer. As such, bad is somehow good, at least in the eyes of the US equity investor. 10-year government bond yields themselves moved higher in both…
German government bond yields were seen higher on the week, with a noticeable curve-steepening bias, driven by higher-than-expected EZ inflation data. 10-year yields themselves increased a full +8 bps to -.40%, led by rising inflation expectations, as evidenced by inflation-linker market pricing. Upside technical support is now being tested, with follow-up support seen near -.30%,…
With trading volumes for US corporate bonds up
