UST MORNING CALL: ‘A World of Brutally Low Interest Rates’
(Bloomberg) -- “With each passing week, the bond market is getting more accustomed to a world of brutally low interest rates,” FTN strategist Jim Vogel says in note.
- “For the next several months, other markets won’t work correctly without low rates,” and “when other markets can’t gain momentum, more money creeps into fixed income”
- Other observations from strategist morning notes:
- BMO (Aaron Kohli): “Rally in rates is led by the long-end as equities in Europe are off about 2% on continued Brexit worries”
- CRT (David Ader): “The importance of corporate deal issuance remains in this environment, although as Tuesday’s session illustrated, it’s a secondary influence to the more immediate impact of moves in oil and stocks”
- Marty Mitchell (independent): “Price action remains positive, the moving averages are crossed positively, and prices are above them so continue to buy on dips until those conditions change or until proven wrong, whichever comes first”
Alert:
HALISTER1Source: BFW (Bloomberg First Word)
People Aaron Kohli (Bank of Montreal)
David Ader (CRT Capital Group LLC)
Jim Vogel (Ftn Financial)
Marty Mitchell (The Mitchell Market Report LLC)
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