Searcher

Published on Friday, September 20, 2019

Market Comment | Bonds regain favor

Demand for sovereign bonds returned this week, with a heightened geopolitical risk (following the oil field attack), liquidity stress in the US repo market and central banks easing their rhetoric. In the coming days, markets will turn their attention to the trade deal.

Key points

  • Key points:
  • Geopolitical risk and supply disruption prevent oil price corrections
  • Markets expect further central bank easing. Markets still price in 72% probability of a 25bps Fed interest rate cut in December, while expectations for an additional depo rate cut by the ECB remain on the table.
  • Fed intervenes to stem liquidity stress in US money market

Documents to download

Geographies

Topics

New comment

Be the first to add a comment.

Load more

You may also be interested in