7 May 2015
Bonds sell off remains intact - BBH
FXStreet (Edinburgh) - Analysts at BBH reviewed the ongoing sell off in European debt markets.
Key Quotes
“The current move in global and US yields, while noteworthy, has not been on par with the “taper tantrum.”
“With the US 10-yield moving from 1.86% on April 1 to 2.21% currently, the curve steepening so far of only 25 bp since April 1 is nothing (at least, not yet) like what we saw in 2013”.
“Not surprisingly, the EM curve steepening since April 1 has also been limited”.
“The worst in EM have seen curve steepening of 25-35 bp, which is in line with the US steepening”.
“Some curves have actually flattened, such as Colombia (-11 bp). Brazil and Turkey are unusual circumstances, as both curves are inverted but have gotten less so since April 1”.
“Note that the German curve has steepened by 37 bp since April 1”.
Key Quotes
“The current move in global and US yields, while noteworthy, has not been on par with the “taper tantrum.”
“With the US 10-yield moving from 1.86% on April 1 to 2.21% currently, the curve steepening so far of only 25 bp since April 1 is nothing (at least, not yet) like what we saw in 2013”.
“Not surprisingly, the EM curve steepening since April 1 has also been limited”.
“The worst in EM have seen curve steepening of 25-35 bp, which is in line with the US steepening”.
“Some curves have actually flattened, such as Colombia (-11 bp). Brazil and Turkey are unusual circumstances, as both curves are inverted but have gotten less so since April 1”.
“Note that the German curve has steepened by 37 bp since April 1”.