India’s sovereign bond investors are converging on a trade idea for 2021. They’re betting that short-term yields would rebound as the central bank soaks up excess cash on signs of an economic recovery. Source: Bloomberg RBL Bank Ltd. and Quantum Asset Management Ltd. are among those forecasting that liquidity tightening by the Reserve Bank of…
With US Rates coming off the lows and breaking out of a three-month range, the fixed income market is “acknowledging the worst of the economic hit might be in the rear view mirror,” said Jon Hill, senior fixed income strategist at BMO. We should be poised for higher yields and larger price action in the…
From Bunds to Gilts, Strategists have been calling for steepeners on the back of an inevitable global economic rebound. In the US, the call is as strong as ever with JPM, MS and NatWest calling for some expression of the trade. Overbond’s very own Rates Strategist, Tim Self, backtested a tactical 5s10s curve strategy. Inquire…
As interest rates have continued to climb today’s bearish market, the non-traditional bond funds have gained 0.6% this year. Source: Bloomberg Created after the financial crisis to prosper on rising interest rates, the funds instead have bumped along for years amid persistently low borrowing costs. But as rates have climbed in today’s bearish market, go-anywhere bond…
Rising rates reflect optimism in economic prospects, but can slow growth by making borrowing more expensive Source: The Wall Street Journal The worst bond rout in three years deepened Thursday, hammering debt issued in emerging markets and many U.S. states and cities, while sparing large companies the brunt of the impact. The yield on the 10-year…
With trading volumes for US corporate bonds up
