The Wall Street Journal – Cats and Dogs Living Together? Bonds and Stocks Both Rising The S&P 500 crossed the 2000 mark last week, and is up a bit more than 8% on the year. Meanwhile, three broad measures of bond prices, the Ryan 10-year U.S. Treasury index, the Barclays corporate bond index and Barclays… Continue reading The Stock/Bond Relationship
The Wall Street Journal – ECB: Draghi’s eurozone deal The central bank president’s call for a fiscal and monetary pact has won a mixed reaction About halfway through the speech, Mario Draghi stumbled. The European Central Bank president had reached a passage in his prepared remarks about the worrisome trend in inflation afflicting much of… Continue reading QE In Europe
The Wall Street Journal – Liquidity Rules Coming to Wall Street U.S. regulators are opening a new front in their efforts to create a safer financial system with rules designed to ensure banks can survive a crisis without running out of cash. The new liquidity rules, the first of which will be voted on by… Continue reading Making Wall Street Safer With Liquidity Rules
Zero Hedge (Blog) – Trading Treasuries In 1 Simple Chart While it is unclear if August’s exuberant buy-it-all strategy will hold for September, the following chart from BofA should raise a few eyebrows. In August, practically all the gains for bonds (yield compression) occurred in the overnight session (from 8pmET to 6amET).
The Wall Street Journal – U.S. Government Bonds Sell Off U.S. bond yields have fallen this year and hit fresh lows of the year in August month even as many U.S. data have brightened the U.S. growth outlook. In August, the 10-year yield fell by over 0.2 percentage point. Traders said factors that have sent… Continue reading The U.S. 10-Year Yield
<Click on chart for larger image> The Financial Times – Yen weakens on back of rising wages The yen’s move was in part triggered by media speculation in Japan that the country’s prime minister, Shinzo Abe, may appoint Yasuhisa Shiozaki, deputy policy chief of the ruling Liberal Democratic party, to run the health ministry. “We’ve… Continue reading The Weakening Yen
The Financial Times – Low rates spur US corporate debt sales September is traditionally one of the busiest months of the year for debt capital markets. Sales of high-grade corporate debt reached a record $144bn last September, helped in part by Verizon’s blockbuster offering of $49bn in bonds. This week, companies are also trying to… Continue reading Corporate Debt And Low Rates
Morningstar – Is the Aggregate Index Too Heavy in Treasuries? The index also sports a longer duration than the intermediate-term bond category. Once again, active managers’ flexibility is an asset here. They can change their duration profile to take advantage of their interest-rate forecasts. Index funds that track the Aggregate Index, however, lack this luxury.… Continue reading Duration Of Barclays Aggregate Index
FT Alhpaville – “Oops, we raised rates too soon” “What really matters is that financial instability risks didn’t rise during the temporary period in which rates were higher,” said nobody. The Financial Times – Rate decisions from leading central banks provide focus Little action is expected from the BoE on Thursday. We know two members… Continue reading Oops, We Raised Rates Too Soon
CNBC – Morgan Stanley bull sees a clear path toward S&P 3,000 Parker said his team looked at such measures as capital spending, hiring, inventory, debt and interest coverage. “If you look at those issues, I think there’s a lot of evidence that this could be a pretty prolonged expansion,” he said. “And if you… Continue reading Will S&P 3000 = DJIA 36,000?
Business Insider – America Is The Best And France Is The Worst America now boasts the strongest manufacturing sector in the world. Earlier today, we learned the U.S. purchasing manager’s index (PMI) for manufacturing hit 57.9, the highest level since April 2010. Any reading above 50 signals growth, while anything below signals contraction. Export sales… Continue reading U.S. Manufacturing