UK gilts plunge as investors eye BoE Governor Carney’s speech, Q4 GDP
Feb 21, 2017 09:09 am UTC| Commentary
The UK gilts continued to plunge Tuesday ahead of the Bank of England (BoE) Governor Mark Carneys speech, scheduled to be held later in the day. Also, investors are waiting to watch the fourth-quarter gross domestic...
Feb 21, 2017 08:48 am UTC| Commentary
The German government bunds declined modestly Tuesday, following higher-than-expected manufacturing Purchasing Managers Index (PMI) during the month of February. Also, investors are looking forward to the release of...

Fundamental Evaluation Series: Long-term yield spread vs. EUR/GBP
Feb 21, 2017 08:35 am UTC| Commentary
This chart shows the performance of EUR/GBP exchange rate in contrast to the performance of long-term yield divergence between 10-year German bund and 10-year UK gilt. During our evaluation period beginning August 2015, we...

Fundamental Evaluation Series: USD/CHF vs. yield divergence
Feb 21, 2017 08:00 am UTC| Commentary
During our evaluation period beginning 2012, the yield spread between the US 2-year bond and a Swiss equivalent has widened by almost 200 basis points but the exchange rate hasnt followed through as much as it should have...

Fundamental Evaluation Series: Yield spread vs. GBP/USD
Feb 21, 2017 07:31 am UTC| Commentary
The chart above shows, how the relationship between GBP/USD and 2-year yield divergence has unfolded since 2012. The cozy relationship between the yield spread and the exchange rate, in this case, is quite visible. Back...

Fundamental Evaluation Series: Yield spread vs. EUR/USD
Feb 21, 2017 07:22 am UTC| Commentary
The chart above shows, how the relationship between EUR/USD and 2-year yield divergence has unfolded since 2012. It is evident that these short rates have been a key influencing factor for the pair as policy divergence...

Fundamental Evaluation Series: USDJPY vs. yield divergence
Feb 21, 2017 07:12 am UTC| Commentary
This one pair has been at odds with yield divergence throughout 2016 as the yen benefited from risk aversion and due to market participants doubts on BoJs abilities to ease policies further. It had shown excellent response...
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