Key Market Views: Macro Strategy Playing Out

Our global macro strategy calling for a substantial downturn in Chinese and US demand growth in H210 continues to pay dividends for our 'key market views'. Long-held concerns that protracted asset price deflation and a potential double dip in the US labour market continue to lend to our bias favouring falling interest rate expectations and risk aversion. Our call for a bullish flattening of the US 2s10s treasury spread has further moved decisively in our favour, compressing by another 13bps to fall to 198bps over the week of August 23-27, hitting our 200bps target in the process. With leading indicator

To read the full article, please choose one of the following options: