sentix ASR Essentials 22-2017
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04 June 2017
Posted in
sentix Weekly
Inflation expectations boosting bunds
The latest sentix survey indicates that investors’ medium-term strategic bias on bunds remains much less downbeat than it was coming into this year (see Chart 9, page 4). However, monthly questions on bond ‘themes’ provide both good and bad news for bond market bulls. On a positive tack, investors view inflation as a much less Eurozone bond-bearish theme than it was coming into 2017, consistent with the 13-week rate of change in bund yields seen in the first half of the year. On a negative note, however, economics is still seen as a notably bearish theme for bonds. At the moment, inflation expectations appear to be winning out over concerns over the economic outlook. It may leave bunds at risk to any signs that inflationary spectre has not been truly laid to rest. See Page 2 for charts.
