Hints and tips:
...“Bond markets have accommodated a good deal of what we can anticipate and now we need to see detail,” says David Ader, chief macro strategist of Informa. “We just don’t know yet....
...Indeed we have sympathy with DB’s Dominic Konstam that they may also struggle in 2016....
...Our US rate strategist Dominic Konstam hosted a call last night and in it he suggested that a minimum pre-condition for stability was for the Fed to validate the re-pricing of the interest rate curve....
...“The debt ceiling keeps yields contained, but once it’s out of the way, we could see higher yields,” says David Ader, strategist at CRT Capital....
...THE CULT OF ORIGINS SS: Not long ago there was a very strange restaurant in London called Konstam [closed in 2010], of a sort it’s impossible to imagine in New York....
...Dominic Konstam, head of interest rate strategy at Deutsche Bank, says: “Stocks are forward looking, whereas bonds are still caught looking back at the world of QE2.”...
...“QE is as much about falling yields as it is about weakening the dollar,” says Dominic Konstam, global head of rates research at Deutsche Bank....
...“The Fed could be pushed into trying to keep a lid on rates,” says Dominic Konstam, head of interest rate strategy at Credit Suisse....
...“There should be natural support for the 10-year note around 4 per cent,” said Mr Konstam....
...Inflationistas: Paul Kasriel Nassim Taleb Marc Faber Bill Gross Deflationistas: David Rosenberg (maybe) Roger Bootle Stephen King Joseph Lavorgna (no link) Paul Krugman Goldilockeans: Dominic Konstam JP...
...“The action is really about supply and little else,” says David Ader, strategist at RBS Greenwich Capital. “The story in Europe is little different to the US....
...“A debtor nation can’t sustain deflation,” says Mr Konstam....
...“The market’s fear, of course, is that China would punish [the US] by buying fewer Treasuries in the 10-year sector,” said David Ader, strategist at RBS Greenwich Capital....
...Dominic Konstam, head of interest rate strategy at Credit Suisse said: “The inflation trade is back with a vengeance as huge fiscal deficits and a weak dollar are inflationary.”...
...Dominic Konstam, head of interest rate strategy at Credit Suisse, takes a different view....
...“When the battery fails, you do not throw out your car,” says Mr Konstam....
...“Rates need to drop a lot more now than they did in the past, in order to deliver the same kind of refi wave,” Mr Konstam says....
...“German business confidence is in dire straights,” said David Brown, European economist at Bear Stearns....
...Reporting by Michael Mackenzie, Saskia Scholtes and David Wighton in New York and Krishna Guha in Washington...
...“German business expectations are falling into a black hole as confidence continues to implode,” said David Brown, chief European economist at Bear Stearns....
...“There is some alleviation in overnight rates, but there are still concerns about lending for longer periods” in the money market, said Dominic Konstam, head of interest rate strategy at Credit Suisse....
...“It will be hard to contain inflation as the global economy is growing at a healthy rate,” said Mr Konstam....
...strategy at Credit Suisse. ”Europe and Japan are leading the charge towards higher yields and that is helping drag the US higher,” said Mr Konstam....
...David Ader, strategist at RBS Greenwich Capital, said: “The CDO worries have progressed to the regulatory level....
...“The Fed is coming from the perspective that the overall economic picture still looks relatively bright,” said Dominic Konstam, head of interest rate strategy at Credit Suisse....
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