CAD rates to continue to outperform US
Jun 30, 2015 01:35 am UTC| Commentary
Recent economic data point to continuing divergence of monetary policies in US and Canada. Q1 GDP in Canada at -0.6% came much weaker than projected by the BOC, showing a greater negative impact from the oil shock than...
Jun 30, 2015 00:49 am UTC| Commentary
Gilts have sold off sharply, taking 10y yields above the forecasts for the end of Q2 and Q3. Although strong UK wage developments have played a small part in the move (prompting more hawkish noises from the MPC), this has...
EUR: monetary policies vs. Greece
Jun 30, 2015 00:34 am UTC| Commentary
The Greek Referendum will drive headlines for the near-term. It is believed that divergence of monetary policies is a more powerful EUR driver than Greek risks.In this context, the timing of the first Fed rate hike and the...
US data accelerates laying groundwork for USD
Jun 30, 2015 00:08 am UTC| Commentary
The dollar struggled once again in June despite signs that US data was turning a corner amidst a continued rise in German sovereign yields and unwind of USD longs. However, solid US fundamentals are driving USD strength as...
Jun 29, 2015 23:45 pm UTC| Commentary
The front-end rallied following the dovish June FOMC meeting. The primary trigger was the downward shift in the 2015 funds rate projections with 5 members now expecting only one hike this year, and now is only pricing in...
Jun 29, 2015 20:52 pm UTC| Commentary
Westpac Research notes:Australian 3yr government bond (futures) yields followed the US, rising from 2.00% to 2.11%, while the 10yr rose from 2.94% to...
Jun 29, 2015 20:51 pm UTC| Commentary
Westpac Research notes:The US 10yr treasury yield yesterday fell 18bp to 2.29% in initial response to the Greek news, which is what one would have expected a safe-haven instrument to do. However, the ensuing price action...