U.S. bond market supports our Fed outlook

Genevieve Signoret

Fixed Income

Data compendium

In what we see as a transitory buying opportunity, TIPS have come down in price (probably on weak global macro data)

…Meanwhile, nominal USTs are trending stable. So our measure of bond-market-implied inflation expectations is dropping. This supports our view that the Fed will not raise rates before 2H 2015.

In our model portfolios and client accounts, non-U.S. DM investment grade bonds have appreciated in LC terms…

…Given recent USD kingship, however, these gains have not yet boosted (USD) portfolio valuations.