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...

Global Markets     In June, UST yields along the 1m5y curve surged 2bps to 16bps following the more hawkish tone of the Fed at the conclusion of its latest FOMC meeting. However, UST yields at the longer end fell by 3bps to 20bps, flattening the yield curve. A rally in long-term UST yields was spurred by the Fed’s insistence that the high inflationary periods in the US are transit...

Global Markets In May, UST yields drifted lower despite the unexpected 4.2% y-o-y rise in April CPI. Rally in the UST market was supported by the Fed’s insistence that the current spike in inflation is transitory and several officials talking down future tapering plans. In contrast, sovereign yields in the euro zone were generally higher in May as economies and coronavirus immunisation prog...

Global Markets          UST yields eased in April amid renewed demand. Demand for USTs was also supported by Biden’s tax hike proposals, growing US-Russia tension, a sharp rise in global COVID-19 cases, and issues over the Johnson & Johnson vaccine distribution. However, selling pressure re-emerged in the final week. The sell-off was spurred by Biden’s proposa...

Global Markets     Yields in government bonds across the US and the UK continued to surge in March amid continued progress in vaccine rollouts and massive stimulus plans. Both the Fed and the BoE left their key policy rates and pace of bond purchases unchanged. Yields on both the 10y UST and 10y UK gilt were up by 63bps and 4bps to 1.74% and 0.93% (Feb: 1.11% and 0.89%). In contrast...

Global Markets     From the US to Germany and the UK, yields on govvies ended February with their biggest monthly surge in years amid expectations of a rapid post-pandemic recovery, causing a global bond rout. The move first began in the US as prospects for a huge fiscal boost gained significant momentum. Combined with global central banks’ dovish holds, yield curves have steepene...

Global Markets     In January, the UST yield curve steepened further with yields on medium to long-term USTs rising at a quicker pace compared to the previous month. Yields along the 5y30y surged by 9bps to 22bps as the US reflation trade gained momentum. The increased inflation expectations were spurred by the prospects for another massive fiscal stimulus package in the US. In Euro...

Global Markets     In December, the UST yield curve steepened with yields from the belly until the long-end rising amid the strong run in riskier markets. The stronger risk appetite was fuelled by the gradual distribution of vaccines across the US and the passing of the USD900 billion COVID-19 aid bill. Meanwhile, short-end yields were anchored by the Fed’s commitment to asset pur...

Global Markets     USTs were in demand in November despite several COVID-19 vaccine breakthroughs and Joe Biden’s US presidential election victory. Demand was buoyed by uncertainty surrounding the ongoing US fiscal stimulus deadlock and additional stimulus by the Fed. In Europe, peripheral government bond yields (Spain, Portugal, Italy and Greece) fell while yields in France and G...