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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.
US
- Investors are returning back to battered government-bond markets in a sign that yields may have started to peak.
- Inflows into sovereign debt totaled $2.8bn in the past week, the fastest pace in six months, according to BofA.
- This marks a stark shift in positioning for an asset class marred by inflationary fears and the prospect that central banks will soon begin to wind down their unprecedented easing measures.
- 10Y yields climbed to 1.77% in March and have drifted ever since.
- This suggests that investors may have already priced in tighter monetary policy by the Federal Reserve, with buyers now ready to lock in yields Investors can be forgiven for trying to pocket carry for the few months until the Fed is forced to tighten policy," – ING Strategist Bouvet
- Referring to a strategy where investors buy bonds to profit from the attached coupon payments.
- "The danger with the strategy is of course that no one knows when the bond market selloff resumes, so carry gains can be wiped out fairly quickly,"
- Bond inflows corresponded with the largest outflow from technology funds since December 2018, according to BofA data.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
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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