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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
GLOBAL
- The constant positive surprise in inflation in the past year has led to a sharp upward retracement in LT government bonds since the start of the year.
- US 10Y yield had surged by 140bps since the start of 2022 and reached a local high of 3.20% earlier this month before consolidating back below the 3% psychological level.
- In this table, we rank the 10Y government bond yield of 31 different countries (EM and DM) over time, from the lowest (1) to the highest (31).
- South Africa continues to remain at the bottom of the League (excluding Russia as low visibility on the 10Y) with a 10Y yield currently trading 10.2%.
- We previously saw that SA continues to offer the highest 10Y real yield among the EM world, which had been one of the primary drivers of ZAR following the Covid19 shock (though recent risk off environment combined with CNY depreciation have been weighing on the risk on currency in Q2).
- China (blue cell) jumped form the 23rd position in the beginning of the year to 17th as LT bond yields have remained stable as growth expectations have been constantly revised to the downside.
- We can notice that China surpassed the US in the League in the past two months as China 10Y bond premium has now completely 'vanished' following the sharp tightening in financial conditions in the US.
- Japan (green cell) remains at the top of the League as BoJ has been offering unlimited 10Y JGBs buying to defend yield cap (0.25%).
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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