Global Markets          10y UST yield pushed closer to 3% in April – a level not seen since late 2018. Hot inflation, uncertainties from external factors such as the Ukraine-Russia military conflict and market expectations of the hawkish move by the Fed on FFR dragged the yields upwards. ECB confirmed that it would conclude its net asset purchases in 3Q2022, which o...

Global Markets          The Fed increased the FFR by 25bps in March 2022, the first rate hike since December 2018 to address spiraling inflation. Meanwhile, the market is pencilling in another six rate hikes in 2022 and three more hikes in 2023. The ECB maintained the deposit facility rate at -0.5%, although other major central banks moved ahead with the rates hike. T...

Global Markets          UST yield curves flattened in February as the yields priced in sentiment over the rate hikes by the Fed and the Russia-Ukraine geopolitical tension that escalated into a full-blown military conflict. The longer end of Germany’s bund yields mainly were in positive territory in February as the market braced for the unwinding of accommodative mo...

Global Markets     The Fed hinted that its asset purchasing activities are likely to halt in March 2022 and future rate hikes are expected to combat surging inflation. 2y10y German Bund yields surged between 9bps and 21bps in January amid spillover effects from the Fed's hawkish hints as expectations for a March policy tightening thickened. UK gilts' yields surged in January amid a ...

Global Markets          The Fed accelerated its asset tapering activity in December 2021 amid rising inflation, leading up to the end of the bond-buying programme by March 2022. Consequently, the UST yields rose between 8bps and 21bps across all maturities. ECB retained its dovish tilts as the central bank maintained its view that the current heated inflation is a pan...

Global Markets     In November, The Fed hinted that it is speeding up the pace of its tapering of bond purchases. Investors expected that rate hikes would subsequently follow the conclusion of tapering activity. The long-end UST yield curve dropped significantly between 12bps to 15bps reflecting the hawkish tone of the Fed. In the EU, the return of demand for safe-haven assets follo...

Global Markets     In October, the Fed signalled that it may begin to taper its bond purchases in November. Investors raised their expectations that the Fed would normalise its policies quicker than expected to contain rising inflation. By end-October, UST yields along the 2y10y curve surged by 3bps to 20bps, reflecting the hawkish outlook. In the EU, surging energy prices, the reco...

Global Markets     In September, the Fed set the stage for swifter rate hikes and commencement of its tapering plan. The Fed’s strong hawkish signal has roiled global bond markets. Investors were also gripped by mounting fears over the inflation outlook. In contrast with other major central banks, the ECB maintained its dovish stance on interest rates in September. In the UK, the ...

Global Markets          UST yields rose in August amid nervous sentiment ahead of the Fed’s Jackson Hole annual symposium. The sell-off was also spurred by the gradual reopening of developed economies despite the rapid spread of the COVID-19 Delta variant. The 10y UST yield was 6bps higher at 1.30% (Jul: 1.24%). Sovereign yields in the euro zone were also higher ami...

Global Markets     In July, UST yields tumbled significantly in a bull-flattening move with yields along the 5y30y curve shedding between 17bps to 21bps to lows last seen in February this year. The rally was spurred by the rapid spread of the COVID-19 Delta variant, amplifying expectations the US economic growth has moved past its peak. The UST bond market rally had also spread to t...