Blokland’s daily sketch
Little yield and growth
The euro has dropped to its lowest level against the US dollar since June 2017. The reason for this seems pretty straightforward. After running above potential last year, GDP growth has come down considerably in recent months and is now expected to remain tepid for the remainder of the year. Partly as a result of this slowdown, bond yields have plummeted again throughout the Eurozone. In Germany, the yield on 10-year debt is hovering around or just below zero. The yield differential between the Eurozone and the US remains historically elevated, putting downward pressure on the single currency.
As a senior portfolio manager I use charts to illustrate financial issues every day. I tweet my favorites as @jsblokland and was named 'one of the 50 most important people for investors to follow in 2018' by MarketWatch.
Previous editions of the daily sketch can be found on my personal financial markets blog. All graphics provided are collected from Bloomberg data and public websites. They do not always reflect my personal opinion and may also not necessarily reflect the opinion of Robeco. Please cite all references or quote the original source if replicating content.
