The press is dominated by the timing of any reduction or cessation in the Fed’s current policy of open ended Quantitative Easing. That means that when any FOMC member makes an appearance than the first reporter’s question seems to be always as to when the Fed will be “tapering” it’s current policy. It was only […]
European Central Banks offer no new support to the economies — FIU
European Central Banks offer no new support to the economies.- they leave it to the Governments to find a solution. The BoE and ECB left interest rates unchanged and both, against some investors’ expectations, did not increase QE (BoE) or allow lower quality collateral to be used in Repo operations (ECB). In the ECB’s President’s […]
The Italian Crisis — FIU
Italy took centre stage yesterday after the inconclusive result from the general election. Price action in Italian Government bonds is certainly not positive for the markets. After an initial weak opening, domestic institutions took prices higher and yields lower after the initial re-pricing of the yield curve. The gradual selling throughout most of the day, […]
Chaotic Markets — FIU
Today was a day that the financial markets used to have back in 2008. It was a fairly quiet start to the European trading session which was dominated by a poor German 10yr Bund auction which saw German 10yr yields hit 1.675% at the end of the morning session. There had been some US Investment […]
Has anything changed? — FIU
Many questions have been asked as to why there was such a dramatic move to higher US Treasury yields last week. And amid those questions there have been many statements as to how the bond market will perform for the next quarter. Firstly, as I pointed out last week, the “Big Compromise” does little to […]