Greece's next real deadline is end-June
Jun 11, 2015 06:35 am UTC| Commentary
The decision to bundle all the IMF payments in June into one looks like a political decision, a signal that PM Tsipras is not ready to risk (yet) a split in his own party. Indeed, with the more radical part of Syriza in...
China's activity growth likely edged up
Jun 11, 2015 06:26 am UTC| Commentary
Chinas activity data are likely to have recovered further in May, albeit at a very slow pace.Since both the HSBC and official PMI reports indicated some improvement in the Chinese manufacturing sector, industrial...
US bond fund positioning cut toward neutral
Jun 11, 2015 06:15 am UTC| Commentary
The beta of US diversified bond funds to the benchmark has fallen back toward average levels, suggesting that positioning at bond funds is much cleaner. The rise in correlation between duration and credit has affected the...
US asset allocation funds cut bond exposure, neutral equities
Jun 11, 2015 06:05 am UTC| Commentary
With nearly $2trn in assets and continued steady inflows, asset allocation mutual funds are becoming increasingly important in the US, as drivers of bond and equity performance. The negative bond-equity correlation that...
Cross-asset positioning after the bond selloff
Jun 11, 2015 05:55 am UTC| Commentary
The volatility in markets since mid-April, when bond yields spiked, has led to considerable positioning shifts across asset classes. Similar to the taper tantrum, the positive correlation between bonds and equities likely...
Jun 11, 2015 05:34 am UTC| Commentary
The rates market is not pricing in monetary easing by BI for the remainder of 2015. Rather, the market would not be surprised if the BI hiked policy rates in response to the Feds lift-off. With the benchmark 9Y IDR bond...
No more room for a BI rate cut this year
Jun 11, 2015 04:56 am UTC| Commentary
BI is not expected to cut the BI rate this year, given current and expected pressures on the Indonesian rupiah (IDR) for the remainder of this year. Further BI rate cuts would only put more strain on the IDR and increase...