Bloomberg has said that bets on rising U.S. yields “are adding to pressure on interest rates in the short term funding market”, where corporate cash holders make overnight loans by Treasury securities as guarantee.Yields on two-year notes tipped 0.44% this week, the highest level in a year, while investors still …
Read More »Credit Suisse: Market odds of a policy error by Fed jump to 40%
The analysis on “The Eurodollar Curve” conducted by Credit Suisse found that “market-implied odds of the Federal Reserve committing a policy mistake have jumped to around 40% from just under 25% two weeks ago”A policy mistake by the U.S. Federal Reserve Bank outranks all the scenarios being priced in by …
Read More »Fed’s Beige Book: Supply chain roars and labor shortage slows economic growth
U.S. economic growth slowed as a result of supply chain disruptions and a growing labor shortage according to a fresh Federal Reserve report. Fed’s Beige Book is a region by region compilation of economic information. In its latest edition issued Wednesday, Fed reported that several districts noted that growth overall …
Read More »Fed’s Quarles: More stimulus lets inflation continue longer
A top Federal Reserve official said he expected elevated inflation pressures to decline without requiring a more aggressive response by the central bank next year.Fed Governor Randal Quarles says he is watching for signs that higher demand will keep prices elevated even after bottlenecks abate, but he warned of growing …
Read More »Gold rises as rate hike expectations played down
On Wednesday, gold rose for a second day following comments by Federal Reserve Bank official that played down the possibility of imminent rate hikes.Gold gained positive traction for the second successive day and shot to fresh weekly tops, closer to the $1,790 level during the early North American session, meanwhile …
Read More »Market Drivers – European Session 20-10-2021
The European trading session, on Wednesday, was quiet for the second consecutive day. The U. S. dollar became further steadier earlier in the European session, but it is now following a more mixed trading pattern, with the sterling tracking lower as it moved away from key resistance near 1.3800.Gold’s gains …
Read More »Market Drivers – U. S. Session 19-10-2021
U. S. stocks continue to rise despite the below-expected economic data concerning the housing sector, one of the most important economic sectors in the United States. Stocks’ surge is mainly due to the positive earnings reports posted by several companies including Netflix as the latest announced earnings posted on Tuesday. …
Read More »Treasury yields struck highest level since June
U.S. Treasury yields jumped on Tuesday. Today’s session has pushed the 10 year Treasury note back to its highest level since June.The 10-year U.S. Treasury yield rose, surpassing the 1.6% level. The yield on the benchmark note added 5.7 basis points at 1.641% level. Yields on 30-year Treasury bonds also …
Read More »Research Paper: Biden’s stimulus plan fuels inflation
U. S. President Joe Biden’s $1.9 trillion American Rescue Plan contributes to high inflation but it isn’t expected to overheat the economy, a new research paper from the San Francisco Federal Reserve concludes. The package signed into law in March included stimulus checks, enhanced unemployment benefits, small business loans, aid …
Read More »Fed official: Inflation lasting longer than expected
Federal Reserve Governor Michelle Bowman said on Tuesday that the US may see inflation lasting longer than expected a few months ago.Bowman did not comment on her outlook for monetary policy in remarks prepared for a virtual event hosted by the Richmond Fed.However, she noted the obstacles making it difficult …
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