The central bank is very likely to send a stronger message that rates are going up in the near future, because the economic outlook is getting brighter. This will put downward pressure on the bond market.
More Quotes from Kornelius Purps:
In all likelihood, disappointing data will at some point in time dampen rate hike expectations. There's a reasonably good chance for yields to move substantially lower over the course of this year.Kornelius Purps
Assume that a time machine is beaming you back to Monday morning. You start the week with the impression of an unexpectedly strong 274k US payroll report in mind. In addition, a clairvoyant tells you that 1) US retail sales surged by 1.4 m-o-m in April, 2) German growth advanced by 4 q-o-q annualized in Q1 2005, 3) speculation about a revaluation of the Renminbi will intensify, 4) the oil price will fall by about USD 3.50 per barrel this week, 5) and the US Treasury will sell USD 51 bn in Treasury Notes. You make up your mind and conclude that in this environment yields need to go up. At least 99 out of 100 market participants with the same information would have shared your view. But reality is different. Yields are down and down and down again. These are Schwarzenegger markets, no one can beat them.
Kornelius Purps
It's yet more bad news for GM and we can't rule out the possibility of even worse to come. Given the big sell-off we've had in Treasuries, this is a good time to buy.
Kornelius Purps
It's becoming harder to believe that the ECB will only raises rates once with confidence high and policy makers sounding hawkish. The short end of the bond market will remain under pressure.
Kornelius Purps
The ZEW indicator is at levels which previously have marked a high, and discussion will now start on whether the ECB will hike rates earlier than in March. This will put the front-end under pressure.
Kornelius Purps
Readers Who Like This Quotation Also Like:
Based on Topics: Economics Quotes, Future QuotesAll the tribes tell the same story. They are surrounded on all sides, the game is destroyed or driven away; they are left to starve, and there remains but one thing for them to do - fight while they can.
George Crook
Some people obtain fame, others deserve it.
Doris Lessing
I don't find intimate scenes more difficult than other scenes.
Joan Chen