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With the Pacific G10 Macro Rates Team 
The summer markets settled in last week, helped by the 2-day holiday in Japan originally scheduled to coincide with the beginning of the Olympic Games in Tokyo. Equities finished the week flat to slightly lower, the yield on 10y Treasury Bonds was 0.05% lower on a week with little volatility in other G10 Government Bonds markets. Geopolitical tensions between the US and China triggered risk-off moves towards the end of the week, but the market reaction remained muted.  

With the Pacific G10 Macro Rates Team 
The week started with good Chinese GDP data (+3.2% vs +2.4% exp., -6.8% prev.) this was stronger than expected but it is still a long way from the 5% to 6% target. Inflation data was also released from several areas and was muted at best. With participants of the view that significant economic slack will persist for some time it is difficult to imagine the inflation data changing dramatically over the coming months.  

With the Pacific G10 Macro Rates Team 
Chinese equities rallied strongly last week, posting a 7.6% gain. US yields were less impressive, the US 30y rallied over 16bp at one point and there was also a significant flattening of the yield curve. These moves in US yields were despite a very large net issuance of 94bln (estimated) and the previous Friday’s very positive jobs number.  

CIO Monthly View with Will Bartleet, CIO and multi-asset portfolio manager at Pacific Asset Management