The Macro Chart Book: August 2018

Local bonds are fairly cheap, US-Sino sabre rattling continues, and corporate credit spreads are tightening In this edition of the chart book, we show that local bonds are trading above fair value (they are relatively cheap) and that the forward rate agreement (FRA) market is too aggressive about pricing in repo rate hikes. We also explore the US-Sino trade war. On the credit side, we explain why corporate spreads are tightening

Local bonds are fairly cheap, US-Sino sabre rattling continues, and corporate credit spreads are tightening In this edition of the chart book, we show that local bonds are trading above fair value (they are relatively cheap) and that the forward rate agreement (FRA) market is too aggressive about pricing in repo rate hikes. We also explore the US-Sino trade war. On the credit side, we explain why corporate spreads are tightening.