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26 September 2022
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- Sweden’s 100bps rate hike was the largest for a western European country so far, putting rising asset risks in focus as borrowing costs rise and property values give way.
- Primary markets saw activity largely concentrated in SSAs as sizeable pick-ups against sovereign issuers drove demand.
- Secondary market spreads for senior deals held firm in EUR while we saw widening across the board in USD. Rate hikes by the Fed, BoE and others provided major impulses into secondary markets.
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26 September 2022
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- While the latest ifo survey signalled that the German economy is slipping into recession, Bunds made losses, while BTPs underperformed after the right-wing bloc won majorities in both of Italy’s houses of parliament.
- Gilts again got smashed after sterling hit a record low, forcing the BoE to issue a statement late in the day that it stands ready to change policy if necessary to meet its inflation target.
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23 September 2022
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- Bunds made losses even as the flash euro area PMIs pointed to a steeper pace of economic contraction at the end of Q3.
- Gilts got smashed and sterling weakened sharply as the UK government announced a larger-than-expected package of tax cuts, magnifying concerns about the lack of credibility of its economic policy.
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23 September 2022
293 KB
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- FOMC: more tightening on the way; marked uncertainty regarding the eventual pivot
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22 September 2022
358 KB
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- Japanese inflation is now at a multi-decade high. But it remains much lower than other major economies, and underlying inflation remains inconsistent with the BoJ’s target.
- The causes are numerous, including cyclical weakness, subdued wage and price expectations, poor demographics and low productivity, some sector-specific factors, and geography.
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22 September 2022
402 KB
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- Bunds made losses with 10Y yields flirting with 2.00% despite a further deterioration in euro area consumer confidence to a new record low.
- As the BoE raised rates by 50bps, left the door open to larger hikes ahead, and the UK Treasury confirmed the reversal of April’s National Insurance increase, Gilts made sizeable losses with 10Y yields surpassing 3.50%.
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21 September 2022
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- Ahead of the FOMC decision, shorter-dated Bunds followed USTs lower, while a BoF retail survey suggested that sales declined for the third consecutive month.
- Gilts largely also made losses, while UK public sector net borrowing continued to rise as debt interest payments reached a record high for August.
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21 September 2022
155 KB
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- Existing home sales: seventh consecutive decline
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