Archive for September, 2016
Monday, September 12th, 2016
Via Marc Chandler at Brown Brothers Harriman:
Drivers for the Week Ahead
The week ahead will likely be shaped by a combination of what happened last week and what will happen next week
Three UK economic reports that will be the focus for investors: Inflation, employment, and retail sales
The US ...
Posted in Uncategorized | Comments Off on FX
Monday, September 12th, 2016
Via Bloomberg :
Credit Agricole said to decide against becoming primary dealer
Regulation, evolving technology dim lure of once-coveted spot
To see how far the prestige of the U.S. Treasury market’s primary dealers has declined, consider the case of Credit Agricole SA.
For years, France’s third-largest bank courted the Federal Reserve Bank ...
Posted in Uncategorized | Comments Off on Primary Dealer Designation Loses Its Allure
Monday, September 12th, 2016
Via Tracy Alloway at Bloomberg:
When Japanese, European, and U.K. government bonds sneeze, U.S. Treasuries catch a cold?
Investors have been eschewing some longer-dated government debt as they fret over the willingness — and ability — of central banks to continue to fan economic growth through unconventional monetary policy such as bond purchase programs.
The skepticism ...
Posted in Uncategorized | Comments Off on Rising Yields Overseas Are a Problem for US Treasuries
Monday, September 12th, 2016
Via WSJ:
By Giovanni Legorano
Sept. 11, 2016 6:35 p.m. ET
0 COMMENTS
MILAN—For UniCredit SpA, the summer of discontent for Italy’s banks looks likely to stretch well into the fall—and possibly beyond.
UniCredit, Italy’s largest lender by assets, emerged as one of the weakest big banks in Europe in July’s stress tests, showcasing the ...
Posted in Uncategorized | Comments Off on Banking Problems in Italy
Monday, September 12th, 2016
Minneapolis Fed President Kashkari thinks that monetary has reached the point where it is no longer effective and he prescribes fiscal policy and structural reforms to spur growth. He made the comments in an essay released on the regional bank's website (here).
Via Bloomberg:
Matthew Boesler
boes_
September 12, 2016 — 12:01 AM ...
Posted in Uncategorized | 1 Comment »
Monday, September 12th, 2016
Via Kit Juckes at SocGen:
<http://www.sgmarkets.com/r/?id=h114e6301,184371a2,184371a3&p1=136122&p2=f766528ee1dd43e986166e6778de7138>
Hurricanes form when rising warm, moist air collides with cold air in the atmosphere at the end of summer over oceans. This market correction was triggered by rising expectations that the Fed wants to raise rates again, colliding with long positions in both risk assets and ...
Posted in Uncategorized | Comments Off on Early FX
Sunday, September 11th, 2016
Via the WSJ:
By Carolyn Cui and
Julie Wernau
Sept. 11, 2016 6:48 p.m. ET
There is nary a corner on Earth where investors won’t journey to find extra yield. But the trip to Mongolia is proving treacherous.
Money managers piled into assets from the world’s most sparsely populated country in past years on the ...
Posted in Uncategorized | Comments Off on Yield Whores Shamed In Mongolia
Sunday, September 11th, 2016
Via Brown Brothers Harriman:
Dollar Proves Resilient as Market Rates Rise
It took the market a few days to overcome the shockingly poor non-manufacturing ISM (51.4 vs. 55.5). However, by the end of the week, the US dollar bulls had regained the upper end. The September Fed funds futures contract was implying ...
Posted in Uncategorized | Comments Off on FX
Sunday, September 11th, 2016
Via Bloomberg:
The Democratic nominee felt ‘overheated’ at 9/11 event
Stocks and bonds had one of worst days since June on Friday
Investors nursing wounds after the worst selloff in three months for equity and debt markets got another stress to ponder after concerns over Hillary Clinton’s health flared anew.
The 68-year-old ...
Posted in Uncategorized | Comments Off on Ms Clinton’s Health and the Markets
Sunday, September 11th, 2016
With the big back up in rates it is natural to search for levels at which the markets might hold. I was just checking my notes and I would use pre Brexit levels as a nice way station. I did not do closes on June 23 but I can relay ...
Posted in Uncategorized | Comments Off on Treasury Market Markers