Panoramic Weekly:Bonds take a bath
The bond sell-off that started last week with the publication of strong US data continued over the past five trading days, even if Friday’s job report came in below expectations and a slew of global data and events only confirmed a worsening momentum: the International Monetary Fund (IMF) cut this year’s world economic growth forecast to 3.7%, down from 3.9%, citing challenges to trade; Italian 10-year bond yields spiked to 3.5% as the government’s turf war with Brussels over the country’s budget intensified; Germany’s industrial output was much weaker than expected (more below); South Africa replaced its finance minister after corruption scandals, and Japan’s Tankan manufacturing report posted a third straight quarterly drop. The backdrop seemed to depress everybody as both bond and equity markets fell. In fixed income, only 9 of the 100 asset classes tracked by Panoramic Weekly posted positive gains....MORE
