A fixed income chart guide to today’s FOMC meeting
Senior Fixed Income Strategist
Summary: Find a chart pack to guide you through the major bond market's themes as the FOMC meeting unfolds.
Depending on the Federal Reserve’ economy outlook, Breakeven rates can be sensitive driving US Treasury yields higher.
The 5-year Breakeven rate continues to rise. If it breaks above 2.72%, it will record the highest inflation expectations since 2006, weighting on the curve’s belly. We might see another spike in 2s,10s,30s butterfly as it catches up with inflation expectations.
Finally, let’s not forget that tomorrow the US Treasury will issue 10 year TIPS and it will be important to understand whether investors seek protection against it after the FOMC meeting.
Quarterly Outlook Q2 2022
Quarterly Outlook Q2 2022: The End Game has arrived
- Shocks from covid and the war in Ukraine have forced the global financial and political world to change, but what will the end game be?
Productivity and innovation have never been more importantAs the world economy hits physical limits and central banks tighten their belts, could equities be facing a 10-15% downside?
The great EUR recovery and the difficulty of trading itIf the terrible fog of war hopefully lifts soon, the conditions are promising for the euro to reprice significantly higher.
Tight commodity markets – turbocharged by war and sanctionsWith supply already tight, commodities keep powering on. But will it last for yet another quarter?
Between a rock and a hard placeGeopolitical concerns will add upward price pressures and fears of slower growth, while volatility will remain elevated.
The Great ErosionInflation is everywhere and central banks try to combat it. But will they get it under control in time?
Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recessionWhile global financial markets are struggling in an uncertain world, the commodity-heavy Australian ASX index is poised to keep a positive momentum.
Cybersecurity – the rush to catch up with realityWith the invasion of Ukraine, governments and private companies are rushing to reinforce their cyber defenses.