Focus on central bank stimulus measures continues – Interactive Data

There was continued unease from investors over possible tapering of stimulus measures by the US Federal Reserve, the latest survey from Interactive Data reveals.

However, while the future of central bank stimulus measures continued to be a focus for investors during August, in the last days of the month attention was drawn to developments in Syria and growing calls for an international response with the potential to destabilise the larger Middle East region, the survey showed.

“Core government bond yields were generally higher on the month, although there were moderate declines at the end of the month with heightening tensions over Syria. The US 10yr benchmark rate, having reached its highest peak in 2yrs at approximately 2.90% mid-month, declined to nearly 2.75% at the end of the month,” the survey also said.

Looking at the Middle East, despite the situation in the country, yields on the Egyptian USD 2020 bond were lower on the month, having started at 8.96% rising to 9.44% on August 21 before ending at 8.88%, the survey also highlighted.

Interactive Data also reported a general widening of bond spreads and credit indices in August. Data provided by Interactive Data’s Evaluation Service shows the iTraxxTM Europe 5yr increased by 7bp to 107bp on the month, the iTraxx Crossover 5yr by 29bp to 435bp while the iTraxx Senior Financials 5yr was up 8 points to 149bp.

 

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