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  • The Pain of Intra-Year Corrections: Understanding the Common Market Volatility

    Investing in the stock market can be a rollercoaster ride, especially when it comes to intra-year corrections. These sudden and significant declines in stock prices can catch investors off guard and cause painful losses. However, it’s important to understand that intra-year corrections are common and can provide opportunities for savvy investors to buy low and…

  • Goldman Mid-Day Wrap: Risk Off Sentiment Puts Markets in Focus

    As markets await potential negotiations out of the Middle East, risk off sentiment prevails, with approximately 70% of the S&P 500 (SPX) in the red. The price of oil has reached local highs once again ($110), and the CBOE Volatility Index (VIX) is nearing 30. Many themes are weak, including Bitcoin Sensitive (GSCBBTC1 Index) down…

  • European Government Bonds: A Tale of Auctions and Support Levels

    European government bonds have had a tumultuous week, with risk trading poorly across the board due to a duration selloff and an influx of supply weighing on country spreads. The German Bund, in particular, saw significant volatility, widening by as much as 8 basis points (bps) intraday before recouping half of those losses in the…

  • Geopolitical Tensions and Trade Probes Disrupt Global Markets

    Geopolitical tensions are causing disruptions in global markets as Iran’s IRGC Navy announced the closure of the Strait of Hormuz, prohibiting traffic to and from the ports of origin of allies of enemies. This move comes after China launched a probe into US trade measures and green products, sparking concerns over the impact on global…

  • US and Iran Resume Talks Amidst Troop Deployment and Economic Pressures

    As tensions between the United States and Iran continue to simmer, both sides have agreed to resume talks in an effort to find a peaceful resolution. The development comes after US President Trump announced a 10-day pause in planned strikes on energy plants, at the request of the Iranian government. While the White House has…

  • Navigating the Energy Shock: Opportunities in the 5y5y Curve

    As we navigate the current energy shock, it’s important to keep a close eye on the shape of the yield curve. While some premium has been taken out at the short end, we believe there is still room for normalization in the longer end, particularly in the US. In this blog post, we will explore…

  • Inflation Market Volatility Creates Opportunities for Investors

    The inflation market has experienced significant movements in March, with meaningful moves across the curve. The risk-off narrative that dominated the market in February led to depressed valuations for TIPS at the start of the conflict. However, the initial reaction of the market was a bid on traded inflation, particularly in the 1-5yr sector of…

  • Diverting Military Aid: Pentagon’s Latest Decision and Its Implications

    The Pentagon is considering diverting military aid intended for Ukraine to the Middle East, a move that could have significant implications for global security. The proposal, which is still in its early stages, would see weapons such as air defense interceptor missiles redirected towards conflicts in the region. While the Trump administration has yet to…

  • Cross-Currency Basis Volatility Remains Elevated Despite Improved Global Environment

    The cross-currency basis markets have continued to exhibit heightened volatility this week, with intraday drops of 2.5bp in EURUSD cross-currency basis and 3.5bps in JPYUSD cross-currency basis on Monday. Despite the global environment showing signs of improvement over the past two days, volatility in these markets remains elevated, with intraday moves now only around 1bp,…

  • The EU’s Security Risks from US Technology and Data: A Growing Concern

    As the European Union (EU) continues to grapple with the challenges of a globalized digital economy, it is increasingly concerned about the security risks associated with relying on US technology and data. A recent article in The Times highlights the growing fear among EU officials that the bloc’s dependence on American tech giants could compromise…