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MONTH END

CROSS ASSET

MONTH END: Last call

BARCAP Bonds

  • US TSYS: +0.05yr (small)
  • EU Govies: +0.08yr (small, average)
  • UK Govies: +0.02yr (tiny, non event)

Citi FX:

  • They see USD sell signal present against all currencies.
  • They add that the poor Yen performance may mean foreign investors need to buy JPY to reduce hedges, helping the USD/JPY sell signal to be the strongest among major currencies in October.

Credit Agricole FX:

  • Month-end model recommends buying EUR/USD into the Oct 29 close at spot (ref: 1.1597) with a stop-loss of -2%.
  • Their overall model points to moderate USD sales with the strongest USD sell signal against the JPY.

Equities Citi:

  • On asset rebalancing, their model points to a rotation out of equities and into fixed income this month..

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