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What’s Next for Bill Yields?
June 5, 2023
Today alone, the U.S. Treasury will issue over $170 billion of bills. This is the beginning of a total wave of issuance over the next few months expected to top one trillion dollars. What it means depends on how much of the funds for these new issues come from the Fed's Reverse Repo Facility (RRP). Predicting moves in the RRP is difficult. So, over the next few days, we will watch the daily take from the RRP.
Newsclips
Quick Comments/What We’re Reading
June 5, 2023
Today's topics include a skip & a hike, betting on higher rates, bearish stock sentiment, 20% higher capital requirements for big banks?, online banks vs. brick & mortar banks, supply chain crisis 2.0?, OPEC takes on speculators, work-from-home, and airfare on the rise
Newsclips
Cartoons
June 5, 2023
Newsclips
Employment in Pictures – 14 Straight Beats
June 2, 2023
Payrolls beat estimates for a record 14th straight month. A 'skip' is still expected at the next FOMC meeting, but the July meeting becomes a bit more interesting.
Newsclips
Quick Comments/What We’re Reading
June 2, 2023
Today's topics include monthly payrolls drive big moves, expect more layoffs this year, manufacturing numbers, slowing global growth, BoJ's potential plan forward, AI frenzy, equity active management, a narrow rally, more on China's economy, and aging global economies
Newsclips
Cartoons
June 2, 2023
Charts of the Week
High Yield Spreads Not Following Tighter Loan Standards
June 2, 2023
Worsening loan conditions have yet to send high-yield spreads wider. It is worth noting the index contains higher quality bonds than in past crises.
Charts of the Week
Tax Receipts Cover 70% of Federal Spending
June 2, 2023
Tax receipts only cover 70% of federal spending as net interest costs are projected to rise.
Charts of the Week
Which Companies Are Conducting Buybacks?
June 2, 2023
Buybacks offer companies a way to increase shareholder value without issuing a taxable dividend. Buybacks among the largest companies make sense given the large cash hoards they hold.
Charts of the Week
Comparing Global Inflation Rates
June 2, 2023
Between April 2021 and May 2022 U.S. inflation was the highest in the developed world thanks to massive stimulus. Thanks to the aggressive stance taken by the Federal Reserve, U.S. inflation is now falling faster than inflation in many other countries.
Charts of the Week
Nvidia Joins the Trillion Dollar Club
June 2, 2023
Nvidia has capitalized on the AI frenzy, joining a small club of companies worth more than $1 trillion.