The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Bond Outlook July 19th

A look a continued inflationary pressures coming through in the US and likely effects on US Monetary Policy. Is the Middle East situation a buying opportunity?

Bond Outlook [by bridport & cie, July 19th 2006]

Cast your mind back to the confusion of the emerging market sell off in the third week of May that was based on not a fig leaf of fundament. Closer examination led us to reason that the panic stemmed from two conflicting beliefs: global growth was slowly coming to a halt crushing commodities and future earnings, and the US was expanding too quickly driving inflation and providing the catalyst for further rate hikes. We have long remained optimistic that the world will pick up the slack as the US consumer has their wings clipped. The turnaround in Europe’s economic outlook and the emergence of a middle class in India and China is already beginning to impress on global demand. Systematic inflation was harder to gauge, and decreasing yields and the non-performance of inflation-linked bonds started to give the impression that inflation was being beaten off. Do not be dissuaded though, recent economic data from both sides of the Atlantic is communicating a clear message to hitherto undecided markets: the risk of inflation is real.


US 12-month PPI came in yesterday at 4.5%,

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree