FEEU News and Press, Barclays ETN FI Enhanced Europe 50 ETN From 03/30/21

It appears that bond markets are returning to pricing the economic recovery. Quarter-end flow might still complicate price action, but US data later this week should bring rates back on their upward trend. In Europe, the release of Spanish and German inflation data should provide ...

The weak US 7yr auction is a timely reminder that the backdrop points to higher rates, and the relief we see currently should prove temporary. This general area of the curve is rich in any case, which may also have proven a deterrent to demand at the auction. The ECB will try to d...

Rates markets are seeing relief as concerns over the disruption caused by last week's SLR decision are allayed, and with infection rates rising again in Europe. Such relief could prove temporary, but the ECB will use every chance to widen the gap versus the US. TLTRO money has jus...

There is a relentless feel to US yields. Even when they are not rising, there is a certain inevitability that they will. With the Fed targeting policy at the tail of the distribution, the outcome is an ever-steeper curve. The eurozone is still struggling on many fronts, so no surp...

Ned Davis Research estimates that a 2% yield in the US 10-year bond could lead the Nasdaq to fall 20%, and with it the entire stock market globally. A small bounce in yields would simply collapse the massive deck of cards of risk built into the economy when rates were manipulated down...

The EU is showing all the signs of a failing state, embarrassingly exposed by Brexit and the EU's political response. At a time of emerging lockdowns in the rest of the world, the EU is badly behind in its vaccination programme and is unlikely to fully emerge from its lockdowns before...

No pushback against higher yields from the Fed and the BoE leaves the door open for further rises. In the near term, an extension of the SLR might provide temporary respite. That does not relieve the ECB of its struggle to keep a lid on rates. The large TLTRO is scant consolation....

Chair Powell glitched just a tad yesterday, but the accomodative promise remains resolute. The BoE is on a not too dissimilar wavelength, while the ECB is just a bit... well, stuck. All doves, but different types. The ECB needs to be a true dove. The Fed probably does not have to ...

No rate or QE change likely from the Fed - that's the easy bit. But will they hike the rate on excess reserves? Not expected (but they actually should). Will they extend the SLR break for US banks? They likely will (but probably shouldn't). Will the dot plot move? Likely not much....

Bund yields decline again, just as the ECB needs to build credibility in its new efforts. But as struggles with the vaccination rollout and high infection rates sour general sentiment in the EU, the part played by ECB buying is hard to untangle. The curve feels supply pressure, bu...