27 February 2017
Bassanese Bites: Show me the money! – Week beginning: 27 February 2017
As noted last week, only one of the three more obvious global macro “Trump trades” is working at present, as equities continue to grind higher while bond yields and the $US dollar mark time in an extended “pullback” period. Indeed, US 10-year bond yields dropped to the lower edge of their 2.3-2.6% “consolidation” zone last week, despite hawkish Fed minutes suggesting a March rate hike was not out of the question. Doubts over the size and timing of Trump’s fiscal stimulus plans (US Treasury Secretary Mnuchin seemed to downplay any near-term boost to growth in an interview last week) plus jitters over the upcoming French Presidential election appear to be weighing on yields. The $US was flat which, together with European jitters, was enough to give gold added allure.
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