TCA Financial: Recently, government bond yields have hit record lows, with US Treasury yields even lower. The German Bund yield hovers around zero, while the Japanese government bond yield also reached a record low of -0.163 per cent. Negative yields suggest investors are effectively paying borrowers for keeping their cash. Meanwhile, in the UK, polls show the Leave campaign has taken the lead for first time, albeit with a very small margin, with just a week to go before the Brexit vote.
According to Colin Phipps, Chief Economist at TCA Financial “Today’s main story is the move into fixed income. The fixed income market is benefiting from low inflation prospects, but what we are looking at now are increasing risk aversion flows. Whatever way the British vote next week, market volatility will still continue to plauge the markets. With traders becoming increasingly concerned, as volatility is not good for the broader market, we are seeing weaknesses in foreign exchange and equity.”
The market will also be taking a keen interest in the US Federal Open Market Committee (FOMC), and analysts predict that the Fed will not raise rates. The Bank of Japan also starts its meetings this week where it is expected that the BOJ will ease policy. There is a heightening degree of market circumspection ahead of the FOMC meeting, with the dollar’s strength being hindered.
TCA Financial believe that diminishing market confidence in the BOJ’s inflation commitment could feed back into a stronger yen, making the central bank’s job ever more challenging. Oil prices failed to hold on to the key $50 level, with global benchmark Brent and US crude both down.

About TCA Financial:
TCA Financial is resolutely committed to helping our clients accumulate and preserve wealth by actively managing the deployment of their investment capital within the global financial markets. We have a proven, checkable track record of being able to accomplish this regardless of the prevailing macro-economic conditions because of our expertise and professionalism and because we know that markets, just like people, are all connected to varying degrees at varying times.


Contact TCA Financial:
3122 Shennan Middle Rd,
Futian, Shenzhen, Guangdong,
China
518031




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