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CIBC On Month-/Quarter-End Dynamics

CROSS ASSET

On month-/quarter-end flows CIBC note that "a sharp bond selloff coupled with a rally in equities should leave balanced portfolios underweight fixed income heading into month end. This has led to a strong consensus of fixed income buying, which so far has not been seen. The strength of the reflation trade - especially with Biden introducing his infrastructure package tomorrow - may supersede the impact of rebalancing flows. For FX, we see stronger USD buying into month end, which may be further encouraged by higher U.S. yields."

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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