G10 Macro Rates Market Analysis – Weekly Review – 23rd June 2021
3 minutes read time Post the FOMC, the ECB’s Chief Economist was very quick to point out the Eurozone economy was a long way behind the USA. With the suspicion that their board is worried about the recent strengthening of the euro. Canada Headline inflation was strong May CPI +0.5% MoM (0.4% exp., 0.5% prev.) and +3.6% YoY (3.5% […]
G10 Macro Rates Blog – Prepare for lift off
2 minutes read time Find out more on Pacific G10 Macro Rates What if inflation is not transitory? Those core central banks have been sanguine about inflationary pressures being only temporary. As shown in the chart below this leaves us in limbo for forward rates and inflation outlook. The big fear is “what if inflation is not transitory?”, the […]
G10 Macro Rates Market Analysis – Weekly Review – 25th May 2021
2 minutes read time With some “serious” fund managers recently allocating to Crypto assets (please don’t make me say it), a review of their rationales and CitiWire mea-culpa’s should be expected, served with a garnish of Schadenfreude from the non-believers. This noise washed out a most important signal – taper – from the FOMC! The minutes noted “talking about […]
G10 Macro Rates Market Analysis – Weekly Review – 18th May 2021
2 minutes read time Equities, not to be left out, had an intraday move of -8% in Taiwanese stocks on a new virus surge. A hacking incident over the previous weekend shut gas supplies to the USA’s eastern seaboard. This initial news flow was backed up by COVID nervousness around the more contagious so-called Indian variant. These forces combined […]
G10 Macro Rates Market Analysis – Weekly Review – 10th May 2021
3 minutes read time Other highlights were Treasury Secretary Yellen’s revelatory comment that policy rates might have to move higher in response to strong growth. She quickly backtracked that this was not guidance being given to the Fed. The BoE did a “fake taper” of decreasing QE purchases without adjusting the target amount. However, they did adjust upwards their […]
G10 Macro Rates Market Analysis – Weekly Review – 4th May 2021
4 minutes read time With CPI, PPI PMIs and several G10 central bank meetings, there was certainly potential for volatility. However, CPI, PPI were benign across almost all countries and whilst PMIs showed strength in countries exiting lockdown, there were no large increases. Market volatility was disappointingly quiet, again depressed by a benign Fed. Chinese PMIs printed at expansionary […]
G10 Macro Rates Market Analysis – Weekly Review – 19th April 2021
3 minutes read time The Federal Reserve’s Beige Book was a long way from its usual dryness, with the Philadelphia district mentioning severe supply constraints hampering potential growth and describing demand as “on fire”. US economic activity was highlighted as “accelerating to a moderate pace” employment expectations were generally strong. Activity was boosted partly by the vaccination program, with […]
G10 Macro Rates Market Analysis – Weekly Review – 12th April 2021
2 minutes read time Canada Very substantial gains in the jobs market. Mar employment figures printed +303.1k (100.0k exp., 259.2k prev.) pushing the unemployment rate down to +7.5% (8.0% exp., 8.2% prev.) and this was in the face of a large pick up in the participation rate to +65.2% (64.8% exp., 64.7% prev.) USA The Market focused on the […]
G10 Macro Rates Market Analysis – Weekly Review – 5th April 2021
2 minutes read time Biden’s ‘silicon road’ infrastructure plan was also released. A trimmed spend of roughly $2tln, already down from the whisper number of nearer 3, hinting at the difficulty that this will have passing congress – even within the Democrats. With much wrangling ahead, as well as the planned spend occurring over a leisurely 8 years, markets […]
G10 Macro Rates Market Analysis – Weekly Review – 29th March 2021
2 minutes read time Worries about potential growth, oil and some commodities increased as a cargo ship got stuck in the Suez Canal. With Asian trade data continuing to provide positive surprises out of Taiwan and South Korea markets quickly calibrated that an extra week or 2 in delivery times would not significantly derail the growth story and so […]
