Newsclips
More on Treasury Yields Trending Sideways
April 14, 2020
The Fed is buying bonds at rates unimaginable just a few weeks ago, yet yields are not plummeting. Why not?
The Fed is buying bonds at rates unimaginable just a few weeks ago, yet yields are not plummeting. Why not?
Today's topics include the IMF updates its world GDP forecasts, overly optimistic sentiment, pessimistic sentiment, government spending, a profitless recovery, missed mortgage payments will daisy chain through financial system, the New York Fed scales back its repo schedule, and opposition to the Fed's high yield ETF purchases.
A replay of our April 16, 2020 conference call
Last week's stunning stock market rally pulled the market to a 50% retracement of the previous decline. Sentiment has turned more positive, with many thinking the March 23 bottom will mark the bottom for the bear market. We continue to believe these are signs of a bear market rally.
Earnings season starts this week. No one really knows what to expect, but forecasts are coming down hard and probably have further to go.
Today's topics include a truce to support the oil market?, who will buy all this debt?, more on the topic of Fed independence, moral hazard, shadow banks' hand in financial stability, record stimulus might not be enough, companies buying time during shutdown, the Fed's Main Street Lending Program, and trends in unemployment claims.
The Fed greatly expanded its buying program, adding facilities to buy munis and CARES loans as well as broadening eligible bond purchases to fallen angels and a wider swath of investment grade bonds.
A look at the assets on the Fed's balance sheet
In the wake of the government's $2 trillion stimulus bill, the Treasury has ramped up T-bill issuance.
Record numbers of people continue to file initial unemployment claims.