Fixed Income We expect bond markets to do the irrational thing and react adversely to the Fed’s first hike: we project the yield on 10y bond to hop up from today’s 2.33% to 2.60%. We have no satisfactory explanation as to why the US yield curve has steepened so little in the past year. We […]

Currencies We provide updated forecast tables for forex. Note that we see dollar strengthening against the peso by year end to $1.00=MXN16.80. We’re advising clients with large peso holdings held at Mexican brokerage houses to hold them for now in mutual funds that hedge the dollar-peso in the short term. Note further that we see […]