Micro factors are key in the short term

By Jonathan Cunliffe is fixed income market analyst at Lombard Odier There are currently two set...

By Jonathan Cunliffe is fixed income market analyst at Lombard Odier There are currently two sets of competing forces in the UK fixed income market. The first is macro in nature and centres around the increasing signs of a return to synchronised global growth and, in the UK, unsustainably strong consumer spending fuelled by the housing market. This would suggest a higher yield environment given today's low nominal and real term structure of interest rates. Despite disappointing official growth figures, it is clear that the UK manufacturing sector is beginning to benefit from st...