August- could be described as a mad month so far. Price action in Core Government Bond markets this week has been very negative to say the least. The biggest moves have come in the US with Us Treasury 10yr yields rising 18bp from last Friday’s close and 30yr yields higher by 20bp. What has been […]
The Phili Fed Survey — FIU
The Phili Fed survey is now showing that deflation is indeed now a real risk in the US economy. If the Fed hadn’t announced an extension of Operation Twist last night, I would have said that they would certainly be looking at additional stimulus as soon as possible. The Survey released today had more Mid- […]
“Hopium” still there — FIU
“Hopium” still there, but why when the FOMC are clear about what they expect. The FOMC announced that they are extending Operation Twist until the end of the year, beyond the expiry of next month. The FOMC therefore, to me, is ruling out any new form of Quantitative Easing, QE3, this year. The Equity markets […]
The Rout of Europe — FIU
European Bond Yields have risen dramatically in the past few weeks with a rout yesterday and it looks to continue today. This is the price action of the 30yr German Bund down 7 points in 2 days! – Why, what has happened? It’s not as if the market is expecting a positive announcement from the […]