Lates News

Goldman Sachs strategists stated in a report that the impact of oil prices has caused a sudden shift in the interest rate market towards trading based on hawkish policy dimensions. They said that the overall prospect of rising inflation risks has been overshadowed by concerns about growth, and supply-side volatility has weakened the previously re-emerging duration hedging value. "Despite last Friday's weak (US) employment report bringing some support to the front end of the curve again, the market's reaction to data below expectations has been noticeably subdued." The strategist stated that although the trend is volatile, the absolute level of the 10-year US Treasury yield is not unreasonable. Long-term forward rates are still at appropriate levels and consistent with longer-term growth expectations across countries.