Bond Outlook [by bridport & cie, November 30th 2005]
The last week has seen swings in mood and expectations amongst investors: |
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- The ECB on again/off again statements about raising the refinancing rate on 2nd December and questioning whether this is the beginning of sustained tightening
- Contradictory evidence as to whether the housing bubble in the USA is deflating or not (overall home sales down but sales of new houses up)
- Improved US consumer confidence and spending
- The US 10 year yield not rising as many (including ourselves) supposed and the yield curve partially inversing
- Evidence of improvement in European economies, but fears that the ECB rate rise and higher VAT in Germany will have negative impacts.
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