Rates: The unexpected Treasury rally this week set the tone for global markets.
Japanese and other international fixed-income investors, who were net sellers earlier this year, are back in the Treasury market. US debt hedged into yen remains relatively attractive.
Equities: Despite strong Q1 results (due to trading) …
… bank shares underperformed as yields declined.
Emerging Markets: Ukraine hiked rates by 100bps (the market expected 50bps) amid concerns about capital outflows due to the Russian threat.
China: The Huarong situation is spooking bond investors.
Europe: Coming from a low base, Europe’s economic surprise index is higher than the US, Japan, and China.
Food For Thought: Age of cars and trucks in the US:
Edited by Devon Lall
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