The Financial Times – Francesco Garzarelli: Brace for bond market bumps ahead Anticipation of US hikes to lead to steeper euro area yield curve The decline in government bond yields across the major markets has been one of the main surprises this year. Why has this happened? The US is the customary place to start… Continue reading The Bond Market
<Click on chart for larger image> USA Today – Consumer prices rise sharply in May The rise in prices was broad-based, with food, energy, housing, apparel and other costs among those increasing. Food costs jumped 0.5%, the largest increase since August 2011, as meat, poultry fish and eggs rose 1.4% and fruits and vegetables rose… Continue reading Is Inflation A Problem?
The Financial Times – Oil volatility returns as Iraq fears grow Volatility has returned with vigour to the oil markets, as fears over crude supplies from Iraq send futures trading volumes sharply higher. Swings in the oil price, after a long period of low volatility, could force hedge funds to reappraise their trading strategies. If… Continue reading Volatility In Crude Returns
NY Times – Study Asserts Startling Numbers of Insider Trading Rogues There is often a tip. Before many big mergers and acquisitions, word leaks out to select investors who seek to covertly trade on the information. Stocks and options move in unusual ways that aren’t immediately clear. Then news of the deals crosses the ticker,… Continue reading 25% Of All M&A Deals Involved In Insider Trading
Market Watch – This stock trading pro sees bearish parallels to 2007 U.S. market running on ‘hot air and inertia,’ Elder says I recently contacted Alexander Elder, a noted trader and author of several stock market books, including the bestseller, “Come Into My Trading Room.” I wanted to know what he thought of the current… Continue reading Are Stocks Looking Like 2007?
The Financial Times – World Gold Council to explore gold ‘fix’ reform The WGC, the marketing body for the gold industry, said on Wednesday it would hold a discussion forum about the fix on July 7 in London. Mining companies, refiners, central banks and bullion banks – the main users of the benchmark – will… Continue reading Gold Reform
None Today
MarketWatch – Markets to Fed: Give us the ‘dot plot’ and go home It’s only a slight exaggeration to say that financial markets just want the so-called “dot plot” from the Federal Reserve policy meeting next week and will tune everything else out. The dots matter most to investors because they show the best guesses… Continue reading A Note On Tomorrow’s FOMC Projections
The Financial Times – Fed looks at exit fees on bond funds Federal Reserve officials have discussed whether regulators should impose exit fees on bond funds to avert a potential run by investors, underlining concern about the vulnerability of the $10tn corporate bond market. Officials are concerned that bond funds are becoming “shadow banks”, because… Continue reading The Fed Might Charge You To Exit Your Bond Funds
Bloomberg.com – Fed Will Raise Rates Faster Than Investors Bet, Survey Shows The Federal Reserve will probably raise its benchmark interest rate faster than money-market investors expect, according to a majority of economists surveyed by Bloomberg News. Eurodollar futures, the world’s most actively traded short-term interest-rate contract, are underestimating the pace of tightening over the… Continue reading Timing The First Rate Hike
<Click on chart for larger image> The Financial Times – Fed tinkers with plumbing just as it turns on spigot Officials seek to inhibit the use of short-term wholesale funding The US Federal Reserve is wrestling with two legacy issues: shoring up the financial system and unwinding its exceptional monetary policy. And one idea circulating… Continue reading Repo
Bloomberg.com – IMF Cuts U.S. Growth Outlook, Sees More Scope for Zero Rates The International Monetary Fund cut its growth forecast for the U.S. economy this year and said the Federal Reserve may have scope to keep interest rates at zero for longer than investors expect. The Washington-based IMF now sees the world’s largest economy… Continue reading The IMF’s Economic Projections