MAC Monitor

Bank of England raises rates…and Gilt yields plummet; Strong jobs report boosts the dollar; Stronger stock-bond correlation raises portfolio risk

Yields see-saw over mixed economic data and central-bank comments; Yen plummets as BoJ defies markets by leaving yield cap in place; Decoupling stock and bond prices reduce portfolio risk.

Dollar falls to 7-month low as decelerating consumer prices take pressure off Fed; Easing inflation and rate expectations boost UK shares and bonds alike; Rising cross-asset correlations severely limit diversification opportunities.

Eurozone inflation drop spurs stocks and bonds alike; Dollar strengthens as Fed minutes put water on rate-cut hopes; Falling equity volatility further reduces portfolio risk.

Bund yields end 2022 on 11-year high as ECB warns rates could stay higher for longer; Dollar rally fuelled by aggressive Fed hikes cools off; Lower equity and FX volatilities reduce portfolio risk.

Strong economic data depresses stocks and bonds alike; Dollar bucks downward trend buoyed by higher rates and safe-haven flows; Lower FX correlations dampen portfolio risk.

Dovish Fed comments depress Treasury yields: Lower rates weigh on dollar: Back-to-back monthly equity gains reduce portfolio risk further.

European stocks rally despite yield curve inversion; Dovish Fed minutes depress dollar; Ongoing stock-market recovery reduces portfolio risk, but diversification remains limited

US curve inversion intensifies after hawkish Fed comments; UK tax rises and spending cuts prop up Gilts and pound; Higher equity and FX volatilities boost portfolio risk.

Lower-than-expected US inflation boosts stock and bond prices; Dollar falls over lower rate expectations; Portfolio risk drops as equity volatility eases further.

Hawkish Fed boosts short Treasury yields; The Bank of England raises rates…and the pound drops (again); Recovering stock markets and currencies reduce portfolio risk

Gilt yields and rate expectations revert to pre-mini-budget levels; Euro reclaims dollar parity…for a day; Increased correlations raise portfolio risk.