Archive for June, 2016
Friday, June 10th, 2016
Via Bloomberg;
Eliza Ronalds-Hannon
@elizahannon
Alexandra Scaggs
alexandrascaggs
June 9, 2016 — 7:00 PM EDT
U.S. doesn’t identify category of miscellaneous investors
Bond-market strategists see clues to buyers in Fed data
Who were those masked Treasuries buyers?
A mystery came with the Treasury Department’s allotment data for its blockbuster $26 billion two-year auction on May 24 that left primary ...
Posted in Uncategorized | Comments Off on Mystery Buyer of Two Year Notes
Friday, June 10th, 2016
This Bloomberg article highlights the problem with the Fed's communications strategy. The concept of transparency made some sense at the height of the financial crisis when we first visited the zero bound. Nearly eight years later the FOMC would do markets a favor if it did not tell us what ...
Posted in Uncategorized | 1 Comment »
Friday, June 10th, 2016
Via WSJ:
By Justin Lahart
Updated June 9, 2016 3:03 p.m. ET
1 COMMENTS
The Treasury market’s message on the U.S. economy may be more noise than signal. But the Federal Reserve still needs to listen to it.
Rarely have investors been so willing to loan money to the U.S. government and get so little ...
Posted in Uncategorized | Comments Off on Messages From the Yield Curve
Friday, June 10th, 2016
Via WSJ:
By Min Zeng
Updated June 9, 2016 7:38 p.m. ET
36 COMMENTS
The global hunger for U.S. government debt is intensifying as investors seek better returns from the negative yields and record-low rates found in Japan and Europe.
On Thursday, an auction of 30-year Treasury debt attracted some of the highest demand ever ...
Posted in Uncategorized | 1 Comment »
Friday, June 10th, 2016
Government bond yields around the globe are making fresh lows this morning and equity markets are in the red. Via the WSJ:
By Riva Gold
Updated June 10, 2016 5:12 a.m. ET
Global investors sold stocks and commodities and pushed government-bond yields in Germany, Japan and the U.K. to fresh all-time lows as ...
Posted in Uncategorized | Comments Off on I Love the Smell Of Napalm in the Morning
Friday, June 10th, 2016
Via Kit Juckes at SocGen:
<http://www.sgmarkets.com/r/?id=h10b0c605,17444793,17444794&p1=136122&p2=a8e60826fae709a7ff493c620d418b3f>
Yesterday saw the second-lowest yield ever at a US 30year Bond auction, prompting the FT to observe that creeping fears of global economic slowdown have sent yields falling across the globe. But the surge in foreign demand for Treasuries speaks as much to a lack of ...
Posted in Uncategorized | Comments Off on Early FX
Thursday, June 9th, 2016
Via Bloomberg:
June 9, 2016 — 6:00 PM EDT
Ten-year note yield may reach 1.5%, Citigroup predicts
Volatility before 2015 Greek vote suggests ‘massive’ flows
U.S. Treasury yields may fall toward record lows if British voters decide this month to leave the European Union, according to Citigroup Inc.
A vote on June 23 to exit ...
Posted in Uncategorized | Comments Off on Citibank Sees Brexit Driven Flight to Quality
Thursday, June 9th, 2016
Via Bloomberg:
Fed’s Balance Sheet May Be Too Small by at Least $1t: Cumberland
2016-06-09 15:22:32.478 GMT
By Alexandra Harris
(Bloomberg) -- Fed’s balance sheet should be ~$5.5t, or $1t
bigger than its current size, given global demand for physical
cash, liquidity coverage ratio (LCR) requirements and foreign
bank demand, Cumberland CIO David Kotok writes in note.
* ...
Posted in Uncategorized | Comments Off on Fed’s Brobdingnagian Balance Sheet Too Small
Thursday, June 9th, 2016
Via Bloomberg;
A Breakdown in Old Rules Leads to a Rethink on How Global Markets Work
2016-06-09 19:00:40.737 GMT
By Matthew Boesler
(Bloomberg) -- A standard textbook relationship that every
student of economics learns in school has been flipped on its
head, and it’s leading to a major rethink on the connection
between bank balance sheets, exchange rates, ...
Posted in Uncategorized | Comments Off on FX Arbitrage Breaks Down
Wednesday, June 8th, 2016
Via the WSJ:
By Gregory Zuckerman
Updated June 8, 2016 8:03 p.m. ET
After a long hiatus, George Soros has returned to trading, lured by opportunities to profit from what he sees as coming economic troubles.
Worried about the outlook for the global economy and concerned that large market shifts may be at hand, ...
Posted in Uncategorized | Comments Off on Bearish George Soros Back in the Saddle