Every week we give you our summary of happenings in the bond market.
The release of Q2 GDP growth data this week is expected to reveal a sizeable rebound. However, this rebound is not strong enough to convince us to adjust our investment theme: “When low economic growth becomes bond bearish”. The bigger picture remains one of very weak economic growth with potential dire consequences for fiscal consolidation. The weak national budget data released last week served to remind us to stick to our investment theme and to remain skeptical about bond market valuation at current levels.