It has been much the same story in most of the fixed income markets over the past week. While we could certainly blame Easter and school vacation holidays for declining volumes and volatilities over the past few weeks, we think this is a convenient excuse and simply affirms broader trends that have been in place for the better part of the year. In particular, rates remain range bound, with the 10-year trending between the 2.6% and 2.8% levels that have been in place since mid-January. Corporates continue to be a low volatility treasury alternative pushing to lower spread levels in light of the mild sell-off in the govie market over the past week. The recently maligned high yield market, whose returns have lagged the IG market on a risk adjusted basis over the past few weeks, outperformed as its spreads pushed down to levels not seen since the summer of 2007. Even emerging markets (EM), which appeared on the brink of repeating last summer’s meltdown, have moved from being one of the weakest fixed income asset classes to being the strongest market over the past few months. Taking a step back and looking at other fixed income markets shows that equity indices are largely unchanged in the developed world, whereas most major FX pairs have seen compressing volatility while the dollar index is mostly unchanged from where it started the year. Continue reading…
Related Articles
Market Insights
Bolton Global Capital is not a subsidiary or division of BNY Mellon or Pershing and has no relationship to either company other than offering clearing and custody services provided by Pershing to Bolton customers on a fully disclosed basis.
Newsletter Económico Mensual
A mediados de octubre se conoció una nueva edición de las Perspectivas Económicas Mundiales (WEO, por su sigla en inglés) que produce trimestralmente el staff del Fondo Monetario Internacional (FMI): EI EMI espera que el PIB mundial crezca este año...
Informe Mensual De Mercado
Si bien no tenemos certeza de una resolución clara y justa a nivel geopolítico, los mercados se concentraron en la parte positiva, las “buenas intenciones”, y ensayaron un rebote que los llevo a cerrar marzo con números positivos, acortando la...
Macro Outlook
LatAm ConsultUs Macro Outlook para acciones, valores de renta fija, commodities y cash.
Newsletter Político Mensual
La guerra en Ucrania tiene poco de original. Y esto es así no porque – al decir del eximio escritor español Arturo Pérez-Reverte – todas la guerras sean “la misma guerra”. Sino porque el modus operandi asumido el presidente ruso...