Bloomberg.com – There’s a Big Drop in U.S. Treasury Debt Supply Coming in 2016 Lost in the debate over the U.S. Treasury market’s resilience as the Federal Reserve starts to raise interest rates is one simple fact: supply is falling — and fast. Net issuance of U.S. notes and bonds will tumble 26 percent next… Continue reading Treasury Supply
<Click on graphic for larger image> <Click on graphic for larger image> The New York Times – Chinese Cash Floods U.S. Real Estate Market The great property rush is part of the tidal wave of Chinese money that is pouring into the global economy and reshaping financial markets. In residential and commercial real estate, the… Continue reading What Are The Chinese Doing? Depends Who You Ask
<Click on graphic for larger image> The Wall Street Journal – IMF Move Would Pressure China on Management of Yuan The IMF on Monday is widely expected to say that next year, it will add the yuan to the elite basket of currencies that comprise its lending reserves, a status enjoyed only by the U.S.… Continue reading More On The Yuan Becoming A Reserve Currency
<Click on graphic for larger image> The Wall Street Journal – U.S. Restricts Raising Cap on Federally Backed Mortgages Home prices continue to climb, but the U.S. government is keeping a lid on the size limit for federally backed mortgages, posing problems for home buyers in many pricey markets. The Federal Housing Finance Agency on… Continue reading Jumbo vs. Conforming Loans
Bloomberg.com – Fed Poised to Relinquish Crisis Tools It Used to Bail Out AIG The Federal Reserve plans to vote Monday on giving up the lending tools it used to rescue American International Group Inc. and Bear Stearns Cos. during the financial crisis after U.S. lawmakers restricted the central bank’s power to prop up failing… Continue reading Too Big To Fail
None Today
<Click on chart for larger image> The Financial Times – Robin Wigglesworth: Interpreting Fed funds futures The US rate rise drumbeat grows ever louder, and almost every economist has by now circled December 16 in their diary with bright red ink. But interest rate futures imply there is still a 25 per cent chance that… Continue reading More On The Federal Reserve
<Click on graphic for larger image> The Wall Street Journal – Falling Corporate Profits Blur U.S. Growth Outlook Profits at U.S. companies during the third quarter posted their largest annual decline since the recession, underscoring the competitive pressure from a strong dollar and weak global demand that could limit businesses’ ability to support stronger economic… Continue reading Corporate Profits Continue To Fall
Bloomberg Business – ECB Warns Asia Risks Rising as Fed Liftoff Tests Stability Chances of `abrupt risk reversal’ rising after China turmoil ECB sees `prospective stress’ in shadow banking sector The European Central Bank warned of a rapid repricing of global risk premia, focused on emerging markets, especially if the U.S. Federal Reserve increases interest… Continue reading The ECB Is Worried About Global Stability As The U.S. Raises Rates
Bloomberg.com – Lisa Abramowicz: So Much Trouble, So Few Debt Havens … This just demonstrates how hard it is to find safety. While developed-market sovereign debt has historically offered escape from losses in times of stress, this time is different. Yields are still near historic lows, leaving little room to fall further and a lot… Continue reading Searching For Safe Havens
Bloomberg Business – Boston Fed Joins Eight Other Banks in Seeking Discount-Rate Rise The Federal Reserve Bank of Boston joined eight other reserve banks in requesting a quarter percentage-point increase in the discount rate before the Oct. 27-28 meeting of the Federal Open Market Committee. Directors of the nine regional banks seeking the increase to… Continue reading Banks Request Discount Rate Rise
Bloomberg Business – If China Killed Commodity Super Cycle, Fed Is About to Bury It Higher U.S. rates mean stronger dollar, further eroding demand Oil is among the most oversupplied. Even as prices sank 60 percent from June 2014, stockpiles have swollen to an all-time high of almost 3 billion barrels, according to the International… Continue reading Commodities