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 […]
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 […]
US Economy — Driving over the cliff — FIU
After having been diverted from driving over the cliff, the US economy is now being driven down a very muddy road and after all the rain that the UK has had over the past month I certainly know how slow that makes things. A quick summary of the compromise deal that the US Senate negotiated […]
Making sense of all that is driving the financial markets is certainly not easy at the moment — FIU
The equity markets “Christmas” rally has been fuelled by the expectation of a deal to avert the US fiscal cliff and the imminent release of the next tranche of financial loans to Greece. Both of which to me seem little to cheer about. There should be a deal between the Republicans and the Democrats to […]
Fixed Income and the Markets-ahead of US elections — FIU
As we go into the US elections the market seems to be positioned for an Obama re-election and the latest opinion polls of the swing states seem to suggest that too. The market view seems to be that an Obama win will see 10yr US Treasury yields at 1.50% and a Romney victory would see […]