Daily Commentary BY THE CURVE TEAM –

Keep on Keeping on

4th of January, 2018

It was mostly more of the same from the data and market performances overnight. There was also some central bank news which saw bond markets buck the trend leaving rates a little lower.

Data overnight and this morning, mostly in the form of activity indices in the UK, US and Australia, added further evidence to the synchronised lift in global growth going into the end of 2017. It helped drive another solid performance for equity markets for the key second trading session of the year.

Bond markets bucked the trend with yields finishing a little lower. This may or may not be due to the minutes from the FOMC’s December meeting which were released overnight. It is pretty clear that the FOMC is wrestling with low inflation and an improving economy.

It seems more hikes will still come in the months head but if inflation fails to lift as expected we could see the outlook shift as the year rolls on.

David Flanagan

Director - Interest Rate Markets