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Daily Archives: 27th October 2019

27th October 2019

QE to preserve fixed income performance

MARKET CLOSE:
iTraxx Main

50bp, -1bp

iTraxx X-Over

226.8bp, -2.5bp

🇩🇪 10 Yr Bund

-0.37%, +3bp

iBoxx Corp IG

B+114.3bp, -1.4bp

iBoxx Corp HY

B+404bp, unchanged

🇺🇸 10 Yr US T-Bond

1.80%, +4bp

🇬🇧 FTSE 100

6036.00, (+1.14%)
🇩🇪 DAX

12600.87, (+0.47%)
🇺🇸 S&P 500

3306.51, (+0.62%)

The damned sticky plaster…

It might appear fairly gloomy, but for fixed income we’re in decent shape to see a good run into year-end. The sell-off in rate markets in October has run its course. Meanwhile, Draghi has gone – leaving the Eurozone (as ever) on the brink of a deflationary spiral, struggling to generate any meaningful growth with the central bank clearly short on effective firepower. Lagarde is in – but running out of bullets, not that it is in any way going to deter her from trying more of the same, in a case of ‘not on my watch’. Unfortunately, the central bank has long been firing blanks. Poisoned chalice? Yes, it’s looking like the cycle is over.

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