Multi-Asset Strategy Daily

A daily strategy update focusing on the market's reversal from oversold levels driven by potential US-Iran deal headlines and falling oil prices. Sovereign yields across the US, UK, and Eurozone are generally softening as inflation fears take a backseat to geopolitics.

Key Takeaways

• 1.Geopolitical headlines regarding a potential 'final stage' US-Iran deal triggered a rally in risk assets and an unwind of oversold bond positions.
• 2.European and UK government bonds are currently exhibiting high sensitivity (beta) to energy price fluctuations, with falling oil supporting the front end.
• 3.UK disinflationary signals and political uncertainty (potential Makerfield by-election) are creating a volatile environment for Gilts, though term premia remain sticky.

Table of Contents

• USD
• EUR
• GBP
• JPY
• Important Information
• Interests/ conflicts of interest relating to the strategist/analyst responsible for this publication
• Other information regarding investment recommendations
• Disclaimer