Bond market focus: Eye on the World 01/03/21

Bond tantrum drove markets weaker into month end, led by long-duration ‘tech’, as 10-yr yields briefly hit 1.61%. See markets supported, inflation fears overdone, Central Banks with options, and a cyclicals catch-up and IT resilience.

HOT TOPICS week ahead focus on likely strong US comp. ISM (58) and non-farm payrolls (+200k), progress to passage of <US$1.9tn stimulus and J&J ‘gamechanger’ one-shot vaccine. China annual NPC meeting policy agenda, and OPEC+ to raise output 0.5mbpd after Brent surge.

16-page daily includes: Market recap and What to watch; Hot Topic analysis; Country and Sector allocation eye; Key views; US and global performance, valuation, earnings, and macro forecasts; and report Library.