Higher, Wider, Steeper - What does the bond market sell-off tell us?

Bond markets keep pushing higher and curves steeper - but why? It appears that a combination of better than expected macro data and central banks communicating that rates will be held around present levels for longer than expected is leading to a repricing. The risk is that this not only continues but also takes hold of other markets, notably in the European time zone, where only a small amount of the rate cuts have been repriced as of yet. Positioning and developments in the Yen market are also making investors in Europe and the US jittery.

Participants:

• Peter Schaffrik (Desk Strategy), Head of UK/European Rates & Economics
• Izaac Brook (Desk Strategy), US Rates Strategy Analyst
• Simon Deeley (Desk Strategy), Canada Rates Strategist
• Robert Thompson (Research), Macro Rates Strategist
• Adam Cole (Desk Strategy), Chief Currency Strategist

* Research Analyst opinions are their published views, independent of those expressed by Desk Analysts