The European Corporate Bond Market
Expert bond market daily comment from independent credit strategist Dr Suki Mann PLUS free issuance, spread and performance data charts. For access to subscription-only premium insights direct to your email inbox, sign up here.
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The rising tide has indeed lifted all boats. The macro news flow has been very mixed and we would admit slightly better than expected generally, but we're still failing to break out of the doldrums in any confident and sustainable manner. September's ECB/Fed meetings loom and we do not expect any action on interest rates from either, although the ECB might be thinking ab [...]
The day the music died
They could also be going zero... Actually, they may well go negative. Everything else is heading that way. And it is no longer a "big call". We're talking 10-year Gilt yields, that is. The supply and demand dynamic is going to stifle the BoE's Gilt grab - and while they will face an uphill task to get their £60bn of purchases, the BoE might think that much of the job is do [...]
Madness of crowds
Heavy lifting done, what now?... Central bank intentions have been made abundantly clear. They want you to spend. Soon, we will be paying them to hold our cash. After all, when there's more and more talk of helicopter money as a potential policy initiative to try and get some material fire power into consumer spending, then we know there's much trouble ahead on the macro fro [...]
No one taking away the bowl
The non-farms payroll number is out later today and it could be a game changer. There's not long to wait. Meanwhile, this week has all been about the BoE, while the earnings season in full flow has actually generally been decent. Equities generally have had a mixed week, government bond yields had given some back but the BoE move saw them move sharply lower again. The outst [...]