The summer was characterised by limited volatility in risky assets, but a sharp rise in bond yields, particularly at the long end of global curves. Growth remains solid, especially in the US, while concerns around fiscal deficits and government funding costs are increasing. Against this backdrop, duration is starting to offer attractive opportunities, while credit […]

The US reportedly added 162,000 jobs last month, well above market expectations, triggering a moderately hawkish repricing of US assets. However, Fed Governor Waller delivered a dovish speech the day before the non-farm payrolls release, suggesting that the bar for a rate hike may be higher than previously thought. The upcoming CPI report will be […]

The much-awaited Warsh speech at the Jackson Hole Symposium provided markets with greater clarity, but not many answers. Chair Warsh delivered a hawkish assessment of the economy and offered a clearer indication of the Fed’s reaction function. Warsh stressed that short term interest rates should remain the primary tool for delivering the Fed’s dual mandate […]