Copom minutes to reflect on the prevailing uncertainty on Brazil's inflation and rates

Jun 11, 2015 06:54 am UTC| Commentary

As expected, the BCB raised the Selic target by another 50bp to 13.75% at its June Copom in a unanimous decision. However, the fact that the decision came with an unchanged short statement (compared with the previous...

French HICP inflation expected at 0.4% yoy in May

Jun 11, 2015 06:41 am UTC| Commentary

French HICP inflation is expected to rise to 0.4% yoy in May after its reading of 0.1% yoy in April. France is traditionally the last of the big four European countries to publish their consumer price numbers as they do...

Greece's next real deadline is end-June

Jun 11, 2015 06:35 am UTC| Commentary

The decision to bundle all the IMF payments in June into one looks like a political decision, a signal that PM Tsipras is not ready to risk (yet) a split in his own party. Indeed, with the more radical part of Syriza in...

China's activity growth likely edged up

Jun 11, 2015 06:26 am UTC| Commentary

Chinas activity data are likely to have recovered further in May, albeit at a very slow pace.Since both the HSBC and official PMI reports indicated some improvement in the Chinese manufacturing sector, industrial...

US bond fund positioning cut toward neutral

Jun 11, 2015 06:15 am UTC| Commentary

The beta of US diversified bond funds to the benchmark has fallen back toward average levels, suggesting that positioning at bond funds is much cleaner. The rise in correlation between duration and credit has affected the...

US asset allocation funds cut bond exposure, neutral equities

Jun 11, 2015 06:05 am UTC| Commentary

With nearly $2trn in assets and continued steady inflows, asset allocation mutual funds are becoming increasingly important in the US, as drivers of bond and equity performance. The negative bond-equity correlation that...

Cross-asset positioning after the bond selloff

Jun 11, 2015 05:55 am UTC| Commentary

The volatility in markets since mid-April, when bond yields spiked, has led to considerable positioning shifts across asset classes. Similar to the taper tantrum, the positive correlation between bonds and equities likely...