5 February 2018

Bassanese Bites: Bonds Bite Back – Week beginning: 05 February 2018

The major development across global markets last week was the further lift in bond yields, particularly on Friday, following a decent leap in US wage growth within the January payrolls report. Average hourly earnings rose 0.3% to an annual rate of 2.9% – the highest rate in the post-GFC expansion so far.  Over the week, US 10-year bond yields lifted 18bps to 2.84%, which was enough to drag the S&P 500 3.7% lower.  The Fed meeting by comparison was a non-event, with rates left on hold though with commentary all but confirming the first rate hike for the year will take place next month….

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