Edmond de Rothschild REIM favors short- and medium-term bonds as oil-driven inflation persists
TLT•Edmond de Rothschild REIM cited sustained inflation pressure from higher Middle East energy costs and favored short- and intermediate-term bonds. Brent briefly fell below $100, while physical oil rebounded to $136 as transport costs rose 1,000%.
1. Bond strategy
Edmond de Rothschild REIM flagged sustained inflation pressure from structurally higher Middle East energy costs, despite no new U.S. strike on Iran. Brent briefly dipped below $100, while physical oil rebounded to $136 as transport costs rose 1,000% amid conflict-related disruption. The firm said the Fed and ECB signaled a slightly more accommodative tilt, but policymakers still see limited scope for rapid rate cuts. It favored short- and intermediate-term bonds and expected easing pressure on France’s OAT-Bund spread versus Germany. Its equity view remained constructive into earnings season, with technology seen as supported by a stronger profit outlook, led by AI-linked names.
