Archives » Fed

Correlation | September 13, 2017

Posted on September 13, 2017

Long and short-term correlation are more or less in parity with each other, signifying no particular push toward any single macro theme. We think the decrease in rates and the general belief that rates will stay lower for longer after Fed Vice Chair, Stanley Fischer’s exit will likely start to emerge as a major theme. […]

Momentum | September 12, 2017

Posted on September 12, 2017

Very little has changed as far as momentum is concerned. There does appear to be some strength in energy, metals, and foreign developed currencies. However, this past Monday the S&P 500 and the MSCI Emerging Markets Index achieved new all-time highs, albeit on low volume. This coincides with year-to-date lows for Treasurys fueled by the […]

Income Report Card | July 3, 2017

Posted on July 3, 2017

Our Observations: The 10-year Treasury yield rose to 2.27%, pushing it to the higher end of the recent trading range. Pundits seemed to have shifted their concerns from rising rates to inflation since the Federal Reserve indicated that lower inflation is not a concern. We think it will be important to watch how policymakers respond […]

Correlation | June 28, 2017

Posted on June 28, 2017

During the last week, bond correlations in shorter maturities increased as global bonds reacted to policy changes in interest rates. Many pundits predict only one more rate hike this year from the Federal Reserve so markets may experience a similar effect later this year. The correlation figure measures how each asset return moves in relationship […]