Bond

BoE likely on hold, but will hint at a June cut? Investors waiting for clues despite inflation worries. Market bets on rate cuts later this year, but BoE may be cautious. Vote and inflation forecasts key for future direction.

Any hope of sustaining U.S. fiscal accounts at such stretched levels and keeping the fragile bond market equilibrium intact may have to hinge on avoiding any recession at all - a cycle-busting scenario that seems far-fetched to many.

While overall credit growth is predicted to moderate in FY2025, domestic bond issuance is expected to rise, driven by attractive interest rates and potential foreign investment.

Since the onset of the Covid-19 pandemic, the developing world has faced growing public-sector debt vulnerabilities...

Governments rarely correct deteriorating public finances until they meet some form of debt market disturbance...

Fed Chair Powell reassured that the US isn't facing "stagflation" despite inflation, hinting at possible interest rate decreases, leading to a market rally. Concerns linger over Britain's economic recovery amid declining manufacturing activity and rising costs.

Yen surges after suspected intervention by Japan to stop its rapid weakening. Intervention tactics seem to have changed with authorities stepping in at unusual times and focusing on the speed of yen's decline rather than specific levels.

The Fed kept the policy rate stable at the 5.25%-5.50% range yesterday. The statement did feature some changes...

A fund manager believes the Fed won't cut rates to fight inflation but might do it to help the US government afford its debt. The US debt is ballooning and interest payments are rising significantly.

Core bonds gained ahead of a busy week. US yields dropped between 1.9 and 5.3 bps with the long end outperforming. The US Treasury unexpectedly lifted its quarterly borrowing estimate by $41bn compared to its January estimate (cf. infra).