Markets
Personal Interest Expenses on the Rise
October 6, 2023
Personal interest expenses are eating up a larger portion of households' income.
Personal interest expenses are eating up a larger portion of households' income.
The dollar is in the midst of its longest consecutive streak of weekly advances since the currency began freely floating in the 1970s.
Since the COVID-19 pandemic, bullish sentiment has been scarce. We have argued that the bond bull market ended in 2020 and we have entered a period of rising rates, yet there continues to be a directional skew or "hope" for lower rates.
In the last six auctions, dealers bought less than 15% of the 10-year notes offered, on average. In contrast, investment funds are now taking down almost 62% of the average auction.
How big are the Fed's holdings of bonds, notes, bills, TIPS, MBS, agencies, and FRNs in relation the outstanding market?
A long-term look at retail gas prices
Some interesting charts from our recent posts
Today's topics include previewing tomorrow's payrolls release, distinguishing bull steepenings from bear steepenings, higher rates make recession more likely, quantifying bonds' fall, do deficits matter again?, rising issuance, and Bill Gross sees P/E ratios falling
Today's topics include updating the stock market's slide, volatility in the bond market, throwing in the towel on a soft landing?, keeping an eye on wages, the dollar as the world's reserve currency, crude oil's effect on the dollar & inflation, and who is left to buy MBS?.
As rates head higher, money continues to flow into money market funds. Banks are left with the option of raising deposit rates, which squeezes margins, or watching customers walk out the door.