market pulse
June 10, 2018
Monthly Newsletter – June 2018

“A man who limits his interests, limits his life.” – Vincent Price 

Clues from Recent Asset Classes’ Behavior
Macro: A Deceleration in Sight
Oil: OPEC is Mixing the Cards Again
MENA: A Few Words on Saudi Arabia and UAE

DOWNLOAD THE NEWSLETTER
April 11, 2018
Fixed Income Weekly April 9, 2018

Market Update
Developed sovereign yields fared fairly well last week, in spite of rising political fears, massive volatility in equity markets and weak macro-economic data. Fixed income traders showed discipline and shielded themselves from the messy picture in equity markets. The U.S. 10-year yield kicked off the week higher and continued its upward trend until the yield lost some traction on Friday on the back of the trade war narrative and the weak employment report. Nevertheless, the 10-year yield closed the week higher by 5bps at 2.77%. Germany and Japan 10 yields closed the week flat at 0.49% and 0.04% respectively.

DOWNLOAD THE NEWSLETTER
April 9, 2018
Monthly Newsletter April 2018

However difficult life may seem, there is always something you can do and succeed at. It matters that you don’t just give up.” – Stephen William Hawking

Clues from Recent Asset Classes’ Behavior
Macro: Softness in Data
Oil: Accelerating Decline in Venezuela Production Is the Wild Card
MENA: An Overview of Egypt after the Presidential Election

DOWNLOAD THE NEWSLETTER
April 5, 2018
Fixed Income Weekly April 2, 2018

Market Update
Despite receding political fears and better than expected macroeconomic data in the U.S., the U.S. 10-year yield nosedived last week and the U.S. yield curve was the flattest in a decade amid turbulent equities, rising VIX, and soft inflation data from Europe. The U.S. 10-year yield broke its 50-day moving average and settled near its two-month low, at 2.74%, around 8bps lower than last week’s closing. Apparently, the 3% mark on the 10-year yield is just getting further and further away. Meanwhile, Germany’s 10-year yield also closed the week lower and settled around its two and a half month-low, at 0.50%, 5bps lower on a weekly basis. As usual, Japan’s 10-year yield closed the week flat at 0.04%.

DOWNLOAD THE NEWSLETTER
March 27, 2018
Fixed Income Weekly March 26, 2018

Market Update
Once again, politics dominated the scene and took its toll on global financial markets. At the beginning of last week, traders braced themselves for the FED and BOE meetings; developed sovereign yields marched higher in anticipation of the FED meeting. However, developed sovereign yields lost traction and spreads became wider across the globe in the wake of a rising trade war between the U.S. and China, as well as the appointment of another hawkish member in President Trump’s team. The U.S., Germany and Japan’s 10 year yields closed the week lower by 3bps, 4bps, and 0.01bps, at 2.81%, 0.54%, and 0.018%, respectively.

DOWNLOAD THE NEWSLETTER
March 20, 2018
Fixed Income Weekly March 19, 2018

Market Update
Politics eclipsed economic data during last week, as the looming trade war between the US and China, accompanied by the appointment of new hawk US Secretary of State, as well as rising political tensions between the U.K. and Russia have dominated the scene and forced the long dated developed sovereign yields to trade lower during last week. The US 10 year yield kicked off the week lower, and continued its downward trend for most of the week, as traders stumbled upon many political events to digest. The 10 year yield, however, gained slight traction on Friday on the back of strong US consumer confidence data. Nevertheless, US, Germany, and Japan’s 10 year yields closed the week lower by 2bps, 7bps and 1bps, at 2.84%, 0.57% and 0.03%, respectively.

DOWNLOAD THE NEWSLETTER
March 12, 2018
Fixed Income Weekly March 12, 2018

Market Update
The resignation of Gary Cohn, best known free trade advocate, shocked global financial markets and set developed sovereign yields lower at the start of last week as traders became more skeptical about the global trade war rhetoric. Afterwards, yields stabilized as traders braced for the ECB meeting and the intensity of trade war cooled down. Nevertheless, developed sovereign yields closed the week nearly flat on the back of the strong U.S. employment report. U.S., Germany and Japan’s 10 year yields ended the week almost unchanged at 2.89%, 0.64%, and 0.04%, respectively.

DOWNLOAD THE NEWSLETTER
March 7, 2018
Fixed Income Weekly March 5, 2018

Market Update
Developed sovereign yields had another volatile week as Investors faced too many events to digest. Sovereign yields kicked off the week stable, then yields moved higher on the back of hawkish FED Chairman. Afterward, yields dropped substantially in anticipation of President Trump protectionism rhetoric. However, yields pared all losses on raising inflation fears and closed the week almost unchanged. U.S., German and Japan 10 year yields closed the week at 2.86%, 0.64% and 0.04% respectively.

DOWNLOAD THE NEWSLETTER
March 1, 2018
Monthly Newsletter March 2018

“The hardest thing to learn in life is which bridge to cross and which to burn” – David Russel

Clues from Recent Asset Classes’ Behavior
Macro: A Slight Softness in Data
Oil: Demand Growth Is the Wild Card
MENA: Some Encouraging Signs in Jordan despite Challenges

DOWNLOAD THE NEWSLETTER
February 27, 2018
Fixed Income Weekly February 26, 2018

Market Update
Despite hawkish FED minutes of meeting as well as a flood of U.S. Treasury new issuances, the U.S. 10 year yield closed the week almost unchanged. The U.S. 10 year yield kicked off the week higher, but weak macro-economic data from Germany accompanied with decent U.S. Treasury auction, albeit at higher rates, had forced the 10 year yield to lose around 7bps and close the week at 2.86%. Meanwhile, Germany’s 10 year yield closed the week 5bps lower at 0.65%. Japan’s 10 year yield closed the week nearly unchanged at 0.05%.

 

DOWNLOAD THE NEWSLETTER