The Nonfarm Payrolls (NFP) report is closely monitored markets as it provides insights into the overall health of the labour market. It is a key economic indicator and influences decisions related to monetary policy. Nonfarm Payrolls data for December increased by 216,000, showing strong growth and surpassing expectations across the board. Data for the previous …
The UK’s Finance Minister, Jeremy Hunt, has unveiled a series of measures aimed at revitalizing the economy without causing disruptions in the financial markets. Hunt announced a £21 billion stimulus package, emphasizing its collaboration with the Bank of England (BoE) to achieve the 2% inflation target by 2025, as projected by the Office for Budget …
Global equities soared on Tuesday following US inflation data coming in cooler than expected. Markets celebrated this news and and bet that the era of interest rate hikes for this Fed is over. They also pulled forward bets of when the Fed will first cut rates to the first half of next year. US inflation slowed …
The Bank of England (BoE) left rates on hold for the second time in a row at 5.25%, and ruled out the possibility of cuts anytime soon. The Monetary Policy Committee (MPC) voted 6-3 to keep Bank Rate at 5.25%, as expected by markets. Governor Andrew Bailey said inflation was still too high and that …
Bank of England keeps interest rate at 15-year high of 5.25% Read More »
Treasuries rallied taking 10 year yields above 5.0% on Monday, hitting a 16 year high, continuing the recent sharp swings. The yield peaked at 5.03%, the highest since 2007 before quickly falling to 4.83%. At the start of the year, the 10-year yield was 3.90%. Contrary to market expectations of a decline and a banner …
The latest UK inflation data has shown a slight surprise to the upside, coming in at 6.7%, surpassing the consensus estimate of 6.6%. This figure is a crucial indicator of the country’s economic health. The core inflation rate, which excludes volatile factors like food, energy, alcohol, and tobacco prices, is often seen as a better …
A bond is a financial instrument that can be thought of as an IOU. They are issued by governments or corporations when they want to raise capital. Key points to consider: The buyer of the bond is the lender. The seller of the bond is the borrower e.g. Governments or corporations. Principal is the amount …
US employment surged in September, suggesting the labour market remains strong and robust. The persistent strength of the labour market gives the Fed ammunition to raise interest rates once again. Nonfarm payrolls increased 336,000 last month, the highest since January. The unemployment rate held at 3.8%, and wages rose at a modest pace. The surprise saw treasuries fall, …
Monday saw long-term Treasury yields reach multiyear highs, with the US 10-year yield surging by more than 10bps to 4.54%, its highest level since October 2007. The 30-year yield also rose significantly, climbing as much as 13.6 basis points to 4.66%, a level not seen since April 2011. This surge in yields swiftly followed signals …
Long-term yields reach their highest levels in over a decade Read More »
The Bank of England (BoE) decided to hold interest rates at 5.25% after 14 consecutive hikes, with five voting members in favour and four against. The banks decision means that the cost of borrowing for commercial banks remain at 5.25%, still the highest level since 2008. This news comes a day after a surprise slowing …