G10 Macro Rates: July Monthly Commentary
2 minutes read time Was July the end of the beginning, or the beginning of the end of the current rate hiking cycle? Most G10 central bank rate paths are now priced at, or close to peak rates. The softening of July data in Europe and the US provoked a dovish hike of 25bps each. Other than jawboning from […]
G10 Macro Rates: June Monthly Commentary
2 minutes read time June proved to be yet another brutal month for UK rates, The pressure for central banks to stay hawkish has been amplified as presented by the G4 at last week’s Sintra conference. UKs core inflation is stubbornly persisting and, in many ways, has acted as a warning to other central banks. Canada and Australia resumed […]
G10 Macro Rates: May Monthly Commentary
< 1 minute read time May was choppy, symptomatic of a near end to a rate hiking cycle. The monetary disparities between G10 countries being illuminated as the RBNZ hiked 25bp and indicated a peak, The Fed hiked 25bp and hinted at a pause, the ECB hiked 25bp but stayed firm on at least 2 further hikes, the RBA hiked […]
G10 Macro Rates: April Monthly Commentary
< 1 minute read time So much of the last 6 months has seen flows reverse direction from the prior month, April was no exception. The fear of financial contagion in March was replaced by calm and consistent Central Bank messaging from the Fed, ECB and BoE regarding financial stability and inflation focus. This led to markets backing up yields […]
G10 Macro Rates: March Monthly Commentary
2 minutes read time Something finally broke, in fact a few things did. March was dominated by record deposit withdrawals after the demise of a few banks, some American and one Swiss. The gist being that 475bp of tightening in a little over a year by the US Federal Reserve had not been a common scenario for risk models. […]
G10 Macro Rates: February Monthly Commentary
< 1 minute read time G10 central banks didn’t have to push back against the rapid easing of financial conditions in January,the data did it for them. The widely held expectation of softening inflation numbers repeatedly failed toeventuate, including the core PCE in the US, a data point specifically focussed on by the US Fed Chair. As aresult, over February, […]
G10 Macro Rates: January Monthly Commentary
< 1 minute read time After a rare negative underperformance of both bonds and equities in 2022, January 2023 bounced backwith vengeance. The question now being asked, is whether this momentum can be maintained as the market is now pricing the goldilocks’ soft-landing scenario driven by immaculate disinflation. G10 central banks are closing in on their end of cycle rate targets, […]
G10 Macro Rates: December Monthly Commentary
< 1 minute read time December continued the trend of the previous month. Inflation data softened further, and with it a softening of the narrative for outsized hikes. The one exception being the ECB President Lagarde explicitly spelling out at least two more 50bp hikes, catching the market on the hop. China’s reopening is an oxymoron at this stage as […]
Kepler Alternative UCITS Forums: Pacific G10 Macro Rates
< 1 minute read time Pacific’s G10 Macro Rates Team were delighted to be part of the Kepler Absolute Hedge Alternative UCITS Forums, speaking to delegates in London, Frankfurt and Geneva.
G10 Macro Rates Blog – What’s the alternative?
3 minutes read time After historic bad returns for bonds in the first half of 2022, the traditional hedge for long equity exposure is being questioned after failing so spectacularly.
