Tag Archive: Bonds
Italian Euro Exit: Why it Might Come in some Years and Why it Will Help the Euro Zone and Italy
Italy has three options: 1. exit the euro zone and devalue the currency; 2. remain in the euro zone and devalue salaries. 3. go for Japan-like decades-long slow growth with stagnating wages, but also with falling inflation and (positive news!) falling bond yields.
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FX Daily, November 10: US Dollar, Equities, and Commodities Firmer as Reflation Trade Takes Hold
GBP/CHF rates spiked by almost two cents during Wednesday’s trading, providing those clients holding Sterling with some of the best rates they’ve seen in the past few weeks. This move came following confirmation that Donald Trump had won the race for the White House, news which sent shockwaves through the market. How the outcome will affect the global markets is difficult to analyse at this point but could yesterday’s positive spike indicate better...
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Jim Grant Puzzled by the actions of the SNB
James Grant, Wall Street expert and editor of the investment newsletter «Grant’s Interest Rate Observer», warns of a crash in sovereign debt, is puzzled over the actions of the Swiss National Bank and bets on gold.
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The ECB Made A Mistake During Its Daily Bond Purchases
Something unexpected happened when the ECB released its latest bond purchase data at during its scheduled release time on Monday: in addition to the purchase of at least 20 separate corporate bonds under the bank's CSPP bond buying program during the week ended October 14, amounting to a total of €1.84 billion, which lifted the number of securities held by the central bank to 660, bringing the total to amount of its holdings to €33.8 billion, or...
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Deutsche Bank CEO Returns Home Empty-Handed After Failing To Reach ‘Deal’ With DOJ: Bild
Following the seemingly endless procession of short-squeeze-fueling trial balloons last week - from settlement rumors to German blue-chip bailouts to Qatari investors - Germany's Bild newspaper confirms the rumors that sparked weakness on Friday: Deutsche bank CEO John Cryan has failed to reach an agreement with the US Justice Department.
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Will The ECB Buy Stocks?
Debate about the ECB’s stimulus options have continued to rage, with an equity purchase plan mentioned as a possibility. We think the ECB could legally buy ETFs that fit its requirements… but it would be controversial and we question the benefits. An ETF programme could total EUR 200bn, which would not be large compared to the overall QE programme.
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Great Graphic: Stocks and Bonds
The relationship between the change in Us 10-year yields and the change in the S&P 500 has broken down. The 60-day correlation is negative for the first time since late Q2 2015. It is only the third such period of inverse correlation since the start of 2015.
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FX Weekly Preview: Capital Markets in the Week Ahead
Global bonds and global stocks ended last week on a weak note and this will likely carry into this week's activity. The Bank of England meets, but the data may be more important. Oil and commodity prices more generally look vulnerable, and this coupled with higher yields sapped the Australian ad Canadian dollar in the second half of last week.
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Case For -2 percent Rates, Banning Cash? Jim Grant Blasts Lunatic Proposals
Looking for group think, extrapolation of extreme silliness, linear thinking, and belief in absurd models? Then look no further than Fed presidents, their advisors, and academia loaded charlatan professors. Today’s spotlight is on Marvin Goodfriend, a former economist and policy advisor at the Federal Reserve’s Bank of Richmond, and Ken Rogoff, a chaired Harvard economics professor, a one-time chief economist at the International Monetary Fund.
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FX Daily, September 2: US Jobs Data–Higher Anxiety, Thank You Mr. Fischer
The US dollar is little changed ahead of the job report. Our near-term bias is for a lower dollar. Sterling is flat and is holding on to about a 1% gain this week. The Japanese yen is about a 0.3% lower and is off 1.7% this week. The euro was coming into today for the week.
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Balance of Payments Crisis: Did the Fed Cause the Euro Crisis with Excessive Monetary Easing?
The Fed's excessive monetary easing QE2 caused an inflationary period, that created a balance of payments crisis during which the Eurozone members were obliged to introduce excessive austerity measures.
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Dijsselbloem: The End of the Bankers’ and Bond Holders’ Moral Hazard
We have insisted in several posts that the northern euro zone is very reluctant to continuously bail out the periphery and in particular its banks. The euro group chief Dijsselbloem has confirmed this now.
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Cyprus, the Final Compromise: The Winners and the Losers
UPDATE March 25 The final compromise: via Reuters TOP NEWS Detail of EU/IMF bailout agreement with Cyprus Sun, Mar 24 22:19 PM EDT BRUSSELS (Reuters) – Cyprus clinched a last-ditch deal with international lenders on Monday for a 10 billion euro ($13 billion) bailout that will shut down its second largest bank and inflict heavy …
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Japanese Currency Debasement, Part 1: Current Account and Japanese Bond Bears
In our first part on Japans currency debasement, we look on three aspects, government bond yields, current account balances and potential hyper-inflation which causes yields to rise strongly.
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