RBC Brewin Dolphin’s Post

Bond Markets are on the MOVE. Much attention has been drawn to the recent price action observed in the US Treasury interest rate volatility gauge, which has broken through its short-term resistance. The elegance of the MOVE methodology lies in its adaptability to other markets. A replication of the Move Index for EUR rates reveals that the movement was foreshadowed by the latter.

Bonds are debt securities that pay periodic interest and return the principal at maturity. Interest rates inversely affect bond prices; when rates rise, bond prices typically fall, and vice versa. This relationship is crucial for investors and analysts in financial planning and investment strategies. #Reinvestmentrisk #RateCuts #Moneyprinting #Currencydevaluation #Hedge

In my June CPI review I wrote: "If Shelter is similar in the next two months, it could be possible that the Fed will reduce interest rates at the September meeting by 50 bps! The market currently does not price in this option at all". It seems that bond trades also vote for 50bps cut with their own money :) link to my CPI review: https://lnkd.in/dz9x524F

Are you wondering how the current geo-political events and economic climate may impact your finances or those of your family? Here in Switzerland fluctuations in exchange rates between Swiss Francs, Euros and US Dollars are a constant preoccupation for many people. Whether you wish to gain a deeper understanding of the normalization of inflation or view the comments of our analysts concerning interest rates, our weekly “Market Insights” published by our outstanding team Piguet Galland & Cie SA provides the information you need. Read on to find out more… #privatebanking #wealthmanagement #investments https://lnkd.in/eUzkxmQY

One of the biggest talking points surrounding the market continues to be around if and when the Federal Reserve will start cutting interest rates this year. Watch Michael Sasaki, CFA discuss recent market performance and explain this week's chart.

🌟 Bond Market Outlook: Time to Reassess 🌟 With inflation cooling and the Fed cutting rates, it’s a good moment to rethink bond portfolios. Key insights from recent readings: Treasurys: 5-10 year notes look strong, while long-term bonds carry more risks. Corporate Bonds: Investment-grade bonds, especially triple-B, offer solid yields and low default rates. High-Yield Bonds: Higher-rated junk bonds could be resilient in a slowing economy. Municipals: Long-term munis offer attractive tax benefits with potential rate hikes on the horizon. Bonds are more than just income—they're key diversifiers in today’s market. #FixedIncome #Investing #Bonds #InterestRates #QuantFinance

Following the US a few days ago, the 2-year yield of the Canadian curve is now back below the 10-year yield, ending more than 832 days of inversion. What’s next, will the 2-5 segment of the curve revert back as well in the coming days? Will recession concerns bring down the 2-year part even further?   Fortunately, the 2-5-10 year GoC bond futures are there and liquid as ever to help portfolio managers take advantage of market opportunities and hedge key risks. Popular yield strategies like taking views on the 2-5 or 2-10 portion of the curve can be easily achieved with MX’s inter-commodity spreads, now available on Bloomberg. These strategies trade at pre-determined ratio and eliminate execution risk.   Tickers: 2-5 spread: CVZ4XQZ4 Comdty 2-10 spread: CVZ4CNZ4 Comdty 5-10 spread: XQZ4CNZ4 Comdty

A new report from the Federal Reserve Bank of San Francisco gets into the debate over greedflation -- businesses taking advantage by price gouging. That research finds some evidence of price markups in certain sectors but concludes this was not a leading cause of the inflation spike of 2021 and 2022. More on this corporate greed debate with Sara Sidner on CNN https://lnkd.in/exsG8rRv #inflation

We can't remember the last time there was such a wide divergence in the outlook for short-term interest rates. But, some confusion is to be expected when the Federal Reserve primes the markets for lower rates but provides few details....

🌟 Exciting news in the world of finance today! The Federal Reserve has decided to keep interest rates unchanged, and their dot plot is indicating a potential cut later this year. This decision can have significant implications for the forex market and beyond. Stay tuned for further analysis and market reactions. #FederalReserve #InterestRates #ForexMarket. https://ift.tt/nLUcxzy