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BOE

BNP expect 15bp December hike

US TSYS

Repo Reference Rates

BOE

BNP continue to expect a 15bp November hike

EGB OPTIONS

Euro-Bund Put Spd, Schatz Vol Sale

HUNGARY

JP Morgan On NBH 1W Deposit and Policy Rates

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  • In the past year, momentum on gold has been bearish despite the significant surge in inflation.
  • The precious metal has been constantly reaching lower highs since its peak reached in early August 2020.
  • Historically, gold has been a better hedge against rising uncertainty and market shocks rather than an 'inflation-hedge'. Therefore, there has not been any relationship between gold and some inflation metrics recently.
  • On the other hand, we have seen that Bitcoin has been sensitive to the dynamics of inflation expectations.
  • The chart below shows the strong co-movement between Bitcoin and 5Y US Breakeven.
  • The rise in US 5Y breakeven from 2.40% to 3.20% was associated with a surge in Bitcoin from $40,000 to nearly $70,000 before the recent consolidation.

Source: Bloomberg/MNI