where 10-year Gilt mid-yields climbed nearly 20 basis points to end the month at 3.72%. Since the Bank of England’s monetary policy meeting in March, economists have been mixed on their projections for future moves, with some predicting the bank rate would climb to as high as 5%. Meanwh...
Economic projections released after the meeting show that officials anticipate just one more rate hike this year and that cuts could be on the table in 2024. However, many investors are skeptical and believe that lagging economic growth could force the Fed to reduce rates before next year. ...
so the market should have known how it would be funded. More importantly, there just hasn't been much of a relationship between government deficits or Treasury supply and the level or change in Treasury yields. There also hasn't been much of ...
Source: Bloomberg, M&G (29 December 2023) *2 year bonds or closest available maturity Conclusion While the double-digit returns we saw in 2023 may not be replicated again in 2024, emerging market debt still offers compelling opportunities, especially for investors that are facing the reinvestment ...
(ii) eligible for distribution through all distribution channels as are permitted by MiFID II to professional clients and eligible counterparties, respectively. Any distributor subsequently offering the bonds is responsible for undertaking its own target market assessment in respect of the bonds and ...
The US labor market weakened somewhat but exhibited better balance between supply and demand, a key goal for the Federal Open Market Committee (FOMC). The Federal Reserve (Fed) cut interest rates by 0.50% at its September meeting and projections released in conjunction with the meeting—...
the yield curve remains inverted. current market projections signal an expectation of one or possibly two rate cuts from the u.s. federal reserve in 2024, with the first most likely taking place in september. this represents a more optimistic view than was held early in the quarter, but the...
Even without new staff projections, the European Central Bank makes policy less restrictive and lowers its relevant rate to 3.25%. Konstantin Veit Read Article Economic and Market Commentary Starting With a Bang: Fed Cuts Policy Rate 9/18/2024 We believe the Fed is on a path to cont...
The Fed’s latest median projections (made in September) were for end-2025 to be at 3.375%. Meanwhile, markets are pricing in slightly higher policy rates of 3.8% by end-2025. Our take is that market expectations might still be too aggressive, and co...
However, despite spreads being at such low levels, some investors remain concerned about the health of the world’s biggest economy and the potential for deepening corporate distress or a rise in defaults — particularly if the Fed does not deliver the interest rate cuts the market is expecting....