sentix ASR Essentials 40-2016
|
09 October 2016
Posted in
sentix Weekly
Bunds sentiment bashed by improving macro expectations
The latest sentix survey underlines the continued interplay between macro and bond market expectations. In the case of the Eurozone (EZ), the sentix Economic Expectations Index has further improved, rising from +6.8 to +10.8 in October – its highest level since December 2015. At a market level, economics has become a modestly bearish theme for eurozone bonds, while the ‘themes’ indices also point to a notable pick-up in inflation expectations. All of which chimes with the growing near-term pessimism on Bunds, which is now running at twelve month extremes. It may also help explain investors’ increasingly negative medium-term strategic bias on Bunds. It suggests that macro still matters for bonds. See Page 2 for charts.
