British Pound: Bond underperformance draws bids alongside JPY – BNY

Source Fxstreet

BNY’s Geoff Yu argues that steepening in G10 bond curves and stagflation concerns are generating fixed income-based rebalancing signals that should benefit the Pound and Japanese Yen. Poor performance of gilts and JGBs, combined with political uncertainty in the UK and persistent pass-through issues in Japan, is expected to draw some bids into GBP and JPY.

Stagflation fears aid Pound and Yen

"In contrast to equities, fixed income-based rebalancing has generated more signals due to significant steepening across key G10 markets as inflation expectations surged throughout the month."

"GBP and JPY should also find some bids: gilts have performed poorly due to the combination of stagflation fears and political uncertainty, with the latter generally pointing to greater fiscal impulse upon resolution."

"JGBs have also continued to underperform as the JPY has given up its post-intervention gains and pass-through remains a severe issue."

"We expect fixed income volatility to remain high. As hopes for a peace agreement picked up toward month end, the long end of bond curves was already flattening, reducing some rebalancing pressures."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
MicroStrategy Shares are Performing Better than Bitcoin In 2026, But How?MicroStrategy stock is up nearly 3% at press time, trading above $137 as markets opened on March 9. Strategy just announced another 17,994 BTC purchase for $1.28 billion.The stock trades 57% lower ove
Author  Beincrypto
Mar 10, Tue
MicroStrategy stock is up nearly 3% at press time, trading above $137 as markets opened on March 9. Strategy just announced another 17,994 BTC purchase for $1.28 billion.The stock trades 57% lower ove
placeholder
What to Expect From NVIDIA Stock Price in April 2026?NVIDIA (NASDAQ: NVDA) stock price trades at $177.64 on the 2-day chart, up 5.31% over the past days but still down 6% year-to-date. April sits at a unique inflection for the stock. The Iran conflict c
Author  Beincrypto
Apr 08, Wed
NVIDIA (NASDAQ: NVDA) stock price trades at $177.64 on the 2-day chart, up 5.31% over the past days but still down 6% year-to-date. April sits at a unique inflection for the stock. The Iran conflict c
placeholder
3 Space Stocks To Watch Amid Elon Musk’s SpaceX IPO HypeA $1.75 trillion IPO is about to redefine which space stocks to watch this summer. SpaceX is closing in on the largest IPO ever. The public S-1 is due late May, with the listing slated for late June o
Author  Beincrypto
May 09, Sat
A $1.75 trillion IPO is about to redefine which space stocks to watch this summer. SpaceX is closing in on the largest IPO ever. The public S-1 is due late May, with the listing slated for late June o
placeholder
Experts Predict a 10% S&P 500 Rally, Trump’s “Buy Now” Call ResurfacesA year-old Donald Trump quote urging Americans to “buy stock now” is back at the top of crypto Twitter. The clip is paired with a Wellington-Altus forecast that sees the S&P 500 climbing to 8,000 by y
Author  Beincrypto
May 13, Wed
A year-old Donald Trump quote urging Americans to “buy stock now” is back at the top of crypto Twitter. The clip is paired with a Wellington-Altus forecast that sees the S&P 500 climbing to 8,000 by y
placeholder
Bitcoin Price Downtrend Gains Pace, Recovery Hopes Continue To FadeBitcoin price started a downside correction from the $77,800 zone. BTC is showing bearish signs and might continue lower below $75,500. Bitcoin failed to stay above $77,000 and extended losses. The
Author  NewsBTC
Yesterday 03: 24
Bitcoin price started a downside correction from the $77,800 zone. BTC is showing bearish signs and might continue lower below $75,500. Bitcoin failed to stay above $77,000 and extended losses. The
goTop
quote