The models are broken
The market is trying to get back to the pre-Covid and pre-war times, but that model is broken. A new dawn is here and the financial world needs to adapt.
Steen Jakobsen,
Chief Investment Officer
Summary: Over the past month, the government bond yield curve moved higher due to US-China trade deal hopes, CPI concerns and PBOC not following Fed rate cut. Many long-term investors take this as great opportunity to increase their long exposure as evident by both country specific investment data and Bond Connect statistics.
Sovereign Bond Market: Short Term Yield Spike
Over the past month, the whole government bond yield curve moved higher from 7-15bps with selling interest centered around longer duration 10-year part.