JP Morgan's Nikolaos Panigirtzoglou put out a fascinating report last week, looking at supply and demand in the global bond market in 2014 (The graphs are...

Livewire News

Livewire

JP Morgan's Nikolaos Panigirtzoglou put out a fascinating report last week, looking at supply and demand in the global bond market in 2014 (The graphs are worth viewing). Central-bank buying accounts for $1.6 trillion, more than half of the total demand for bonds in 2013. Next year, almost all the net demand for bonds is going to come from central-banks and the official sector so it really does matter when that demand is diminished. This large transfer of money between central-banks is slowing down, but it's going to take a while. In any case, there doesn't seem to be any conceivable way that the private sector could possibly be able to fund the still-substantial government deficits. As a result, I suspect that QE is likely going to be around for a while, just as a matter of mathematical necessity. The world's national deficits can't get funded any other way. (VIEW LINK)


Livewire News
Livewire News
Livewire

Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment