DM Markets Chart Pack Dollar likely to strengthen further The dollar is now the strongest it has been against a basket of seven other major currencies in more than a year. We doubt the rally is over given the relative prospects for monetary policy in the US... 2nd September 2014 · 1 min read
DM Markets Chart Pack Outlook still fairly positive for European equities Although developed market equities have performed poorly over the pastmonth, in general we do not expect them to continue to struggle. Europeanequities were the worst performers, dragged down by the... 8th August 2014 · 1 min read
DM Markets Chart Pack Euro likely to come under pressure again soon Additional easing by the ECB in June has failed to generate further downward pressure on the euro. Indeed, the euro has strengthened since the Governing Council met last month. However, while the ECB... 3rd July 2014 · 1 min read
DM Markets Chart Pack Falling term premiums drive down Treasury yields The 10-year US Treasury yield fell further in May. Unofficial Fed data suggest that most of this year’s big decline has been due to a drop in the real yield, and that the rally has reflected a... 4th June 2014 · 1 min read
DM Markets Chart Pack Underperformance of Japan's stock market may end soon In April, major stock indices edged higher in the US and Europe but fell further in Japan. We think equities in the US are likely to struggle as the Fed becomes less accommodative, and our end-2015... 2nd May 2014 · 1 min read
DM Markets Chart Pack Is US corporate credit risk becoming mispriced? The credit spreads of US corporate bonds fell further in March. At around 1.7%, the spread over Treasuries of those with a 7-10 year maturity and BBB rating is now below its average of the last... 4th April 2014 · 1 min read
DM Markets Chart Pack Italy’s and Spain’s sovereign credit spreads fall further 10-year government bond yields in Italy and Spain continued to decline in February. Admittedly, yield spreads over 10-year German Bunds seem reasonable given the countries’ current sovereign credit... 6th March 2014 · 1 min read
DM Markets Chart Pack A strong start to 2014 for US Treasuries One of the best-performing assets since the start of the year has been long-dated US Treasuries, with the 10-year yield falling back by some 40bp or so in January, to around 2.6%. This was largely... 4th February 2014 · 1 min read
DM Markets Chart Pack Markets take tapering in their stride The onset of Fed tapering has not been the game-changer for bond andequity markets that many had predicted. Indeed, in the weeks following theannouncement, equity prices continued to gain and bond... 3rd January 2014 · 1 min read
DM Markets Chart Pack Sterling’s strength is unlikely to last Sterling has been the best performing major developed market currency over the past few months, appreciating to more than 1.64 dollars, compared to an exchange rate of 1.50 during the summer. The... 3rd December 2013 · 1 min read
DM Markets Chart Pack Equities boosted by debt-ceiling resolution The extension of the debt ceiling and continued indications that the Fed will not reduce the pace of its asset purchases for a while helped buoy a range of assets in October. Equities benefited more... 5th November 2013 · 1 min read
DM Markets Chart Pack US Treasuries shrug off debt ceiling crisis Although the shutdown of the federal government and the lack of agreement in Congress on extending the debt ceiling have pushed up the cost of insuring against a default by the US sovereign, this... 8th October 2013 · 1 min read
DM Markets Chart Pack Government bonds decouple, but for how long? The 10-year US Treasury yield increased even further in July despite reassurances from Fed officials that US monetary policy is likely to remain highly accommodative for a long time. By contrast, the... 4th September 2013 · 1 min read
DM Markets Chart Pack Gilt yields surge The formal introduction of forward guidance by the UK MPC failed to anchor rate expectations in August as the economic data showed continued strength. Indeed, the 2-year overnight-indexed swap rate... 4th September 2013 · 1 min read
DM Markets Chart Pack Fed policy outlook shakes stock markets The US S&P 500 fell by more than 1% in June in response to growing concerns about the Fed’s policy stance. We forecast the index to end this year at 1,600, which is close to its current level, but... 3rd July 2013 · 1 min read
DM Markets Chart Pack US Treasuries come under fire The 10-year Treasury yield leapt by more than 45bp in May, breaching the 2% level. US government bonds were partly undermined by the minutes of the FOMC’s latest meeting, which suggested a number of... 4th June 2013 · 1 min read