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Search resuls for: "Franck Dixmier"


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Those moves have put the focus back on "steepening trades" - bets that shorter-dated yields will fall relative to longer-dated yields. "Everyone is now re-looking at these curve trades," said Olivier De Larouziere, chief investment officer for global fixed income at BNP Paribas Asset Management. "I would expect that in the next quarter, more people will start positioning for a steepening of the yield curve." That's led to a rare situation where the bond yield curve is "inverted". TIMING IS EVERYTHINGThe market moves over the last week highlight the risk of curve trades.
Persons: Lucas Jackson, Olivier De Larouziere, Fabio Bassi, That's, Alexandre Caminade, Anne Beaudu, Larouziere, JPMorgan's Bassi, Franck Dixmier, John Williams, Ostrum's Caminade, Harry Robertson, Sharon Singleton Organizations: Federal Reserve Bank of New, REUTERS, Bond, U.S, BNP, Management, U.S . Federal Reserve, European Central Bank, JPMorgan, Treasury, Ostrum, ECB, Allianz Global Investors, Reuters Graphics, New York Fed, New York Times, Thomson Locations: Federal Reserve Bank of New York, New York City, U.S, Europe, New
Quantitative tightening, or QT, could see the ECB shrink its gigantic bond portfolio. "We expect the ECB to raise its policy rates by 50 bp at the December meeting," said Michael Schumacher, an ECB watcher with Natixis, in a recent research note. "We also expect an announcement of Quantitative Tightening next year, though the ECB is unlikely to provide a specific start date at this point." Another hot topic for the ECB's Governing Council, which concludes its meeting Thursday with a press conference, will, of course, be inflation and possible peak inflation. "While Inflation likely peaked in October, we see core inflation lingering above 5% until mid 2023 before trending lower," said Anatoli Annenkov at Societe Generale in a recent research note.
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