Rabobank's report highlights the severe impact of the Strait of Hormuz closure on energy stocks and the sharp rise in global bond yields following hot US inflation prints. It warns that 'grinding stalemates' in geopolitical conflicts are forcing markets to abandon hopes for near-term rate cuts.
Key Takeaways
- 1.The Strait of Hormuz remains functionally closed, leading to a rapid drawdown of global crude stocks and increasing pressure on Asian fuel supplies.
- 2.Bond yields are surging globally (US 10s up 24bps) as hotter-than-expected US inflation data suggests rate hikes are more likely than cuts.
- 3.The Australian housing market is showing signs of weakness with clearance rates hitting post-lockdown lows amid higher rates and tax changes.
Table of Contents
- Market comment
- Week ahead
- FX Strategy
- Fixed Income Strategy
- Agri Commodity Markets
- Energy Markets
- Client coverage
- Disclaimer
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Authors
Benjamin Picton
Securities
SPXUS 10-year Treasury yield10-year GiltDXY
Themes
Strait of Hormuz Energy BlockadeBond Market Repricing and Tipping PointGrinding Geopolitical StalemateChinese Industrial Overcapacity
Regions
North AmericaAsia PacificMiddle EastUnited StatesChinaIran