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With the Pacific G10 Macro Rates Team 
With many of the G10 central bankers speaking last week, we focus on the main topic – average inflation targeting (AIT). The announcement of a move to AIT by Chair Powell of the Federal Reserve at the Jackson Hole symposium (virtual, of course), was the result of an 18-month study initially scheduled for release in Q1 2020. 

With the Pacific G10 Macro Rates Team 
Last week little changed for the rates markets. The previous weeks supply of US 3, 10 and 30y treasuries was bedded down with their yields and curve ending lower, and new all-time highs for the tech indices, pushed the boundary of “what is an acceptable P/E ratio?”. 

With the Pacific G10 Macro Rates Team 
Last week we observed a rare comeback of the traditional negative correlation between fixed income and equity markets. Driven by increased government bond issuance and stronger inflation prints across the globe, interest rates went higher (bond prices lower) for most of the week, while equities performed strongly. 

Pacific Asset Management boosts multi-asset SRI team with ESG specialist portfolio manager
Read the full press release below

Pacific Asset Management (PAM) today announces the appointment of multi-asset ESG specialist, Will Thompson as portfolio manager with a focus on its multi-asset SRI funds. Will Thompson will report to PAM CIO William Bartleet. 

With the Pacific G10 Macro Rates Team 
The equity rally continued unabated last week, despite the struggle to reach an agreement in the US to extend fiscal support. Risk assets were supported by stabilizing COVID-19 cases and continued improvements in economic data. The S&P 500 was up 2.3%, the EuroStoxx up 2.5% and the Nikkei up 2.9%, Emerging Markets equities performed strongly apart from Chinese markets that struggled amid deteriorating geopolitical environment.  

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

With the Pacific G10 Macro Rates Team 
Volatility continued declining last week with the VIX reaching lows not seen since the end of February, however it remains historically elevated. US and EM equities finished the week and month on a high, while other equity markets were flat to slightly down. Interest rates continued sliding lower last week, however the noticeable move came from the dollar which was -1% weaker against developed market currencies and -0.35% against the Asian currencies.