Wednesday, 29 April, 2020
(DJ) Fed says it will do everything it can to support economy facing continu… ——————————————————————————-This message may contain confidential or privileged information. If you are notthe intended recipient, please advise us immediately and delete this message.The unauthorised use, disclosure, distribution and/or copying of this e-mail orany information it contains is prohibited.This information is not, and should not be construed as, a recommendation,solicitation or offer to buy or sell any securities or related financialproducts. This information does not constitute investment advice, does notconstitute a personal recommendation and has been prepared without regard tothe individual financial circumstances, needs or objectives of persons whoreceive it. Fed says it will do everything it can to support economy facing continued public-health crisis2020-04-29 18:06:19.483 GMT By Greg Robb, MarketWatch (MarketWatch) — Central bank says coronavirus pandemic poses risks beyond theshort-term The Federal Reserve on Wednesday committed itself to use its full range oftools to help the economy facing considerable risk from the coronaviruspandemic. "The ongoing public health crisis […] Read More
Thursday, 30 April, 2020
The sustainability of the U.S. stock rally will be determined in part by consumers and their behavior after lockdowns. With price pressures squeezing households’ wallets, it may not be the case of a return to business-as-usual that equities are pricing. Earnings season has seen more than a quarter of S&P 500 reporting firms withdraw guidance, and consumer discretionary has far surpassed its sector peers in terms of abandoning profit outlooks. At the same time, earnings […] Read More
Thursday, 30 April, 2020
Bank views post FOMC: MS: An aggressive tone conveying no limits to policy easing, and corp credit facilities that will be operating “fairly soon” garnered a marginal easing in financial conditions. MS strategists exit 30y bond longs, 7s30s flatteners; remain long 5y BEIs, and bearish USD. MS expect an IOER hike eventually. • Given that the Fed is not looking to extend duration of its Treasury purchases as MS had expected, they think the risk/reward […] Read More
Thursday, 30 April, 2020
Bloomberg-Barclays Index Extensions US Tsys 0.14Y, MBS 0.03Y, EGBs 0.14Y, Gilts minus 0.04Y Large selling of equities into bonds and big duration extensions (ex Gilts) Month-end should be very supportive to bonds because equities have risen headlined by a 10% total return in the S&P 500 (producing selling in the rebalance) and index providers may revert to normal rules and produce some very large durations extensions. Remember that last month end, many providers of indices […] Read More
Monday, 27 April, 2020
BANKS EU RATES Citigroup (strategists including Jamie Searle) Recommends buying 10-year gilts versus U.S. Treasuries to target a partial correction given BOE is likely to upsize bond buying by June, issuance is skewed toward the short-end and a rigid Brexit timetable make longer-dated U.K. bonds a good defensive option if there’s a Treasury-led sell-off HSBC (strategists including Chris Attfield) Recommends buying Spain 2s10s steepeners given short-end volatility is contained compared to BTPs, while Madrid is more likely […] Read More
Wednesday, 22 April, 2020
Equities – Cant Live here TY looking a touch tired at these levels… While I’m not convinced of a collapse they could pull back short-term. We have been buying TYK0 139 puts, expire this Friday, currently 8/10 64ths BUND trades heavy.. first support 172.45 then more important double bottom around 172.20 area … before we open up the trendline support currently rising to 171.39 today.. Our case is “equities cant live here” … going to […] Read More
Friday, 24 April, 2020
(BFW) Australia’s Blistering Bond Sales a Breeze Thanks to RBA ——————————————————————————-This message may contain confidential or privileged information. If you are notthe intended recipient, please advise us immediately and delete this message.The unauthorised use, disclosure, distribution and/or copying of this e-mail orany information it contains is prohibited.This information is not, and should not be construed as, a recommendation,solicitation or offer to buy or sell any securities or related financialproducts. This information does not constitute investment advice, does notconstitute a personal recommendation and has been prepared without regard tothe individual financial circumstances, needs or objectives of persons whoreceive it. Australia’s Blistering Bond Sales a Breeze Thanks to RBA2020-04-24 03:35:28.51 GMT By Garfield Reynolds (Bloomberg) — Australia is seeing some of the strongestdemand on record as it sells bonds at a record pace, backstoppedby the RBA’s purchases of debt from the secondary market. Moneymarkets have calmed enough for the central bank to trimpurchases in recent weeks, though Governor Lowe’s pledge toboost buying again if […] Read More
Thursday, 16 April, 2020
Neel Kashkari: Big US banks should raise $200bn in capital now Biggest lenders must prepare for the worst to survive deep economic downturn, writes Fed official https://www.ft.com/content/0b944cd4-7f01-11ea-b0fb-13524ae1056b The writer, president and chief executive of the Federal Reserve Bank of Minneapolis, oversaw the Troubled Asset Relief Program in 2008-09 Large banks are eager to be part of the solution to the coronavirus crisis. The most patriotic thing they could do today would […] Read More
Tuesday, 07 April, 2020
Here are the KEY TAKEAWAYS from today’s Reserve Bank of Australia policy decision: The RBA left its policy rates unchanged, at 0.25% for both the cash rate and the new three-year government bond yield target, as expected by economists. The central bank also noted that its new funding-for-lending facility is now up and running, with the first drawing yesterday; the program covers at least A$90 billion The central bank said there are signs that markets […] Read More
Monday, 30 March, 2020
Virus strategy must change to protect the 90pc While a short, sharp shutdown is sensible, the data shows that calls for a six-month shutdown would cause much more harm than good. Australia needs to pivot its anti-virus strategy to reflect that. Christopher JoyeColumnist While Australia has outperformed most of its global peers in terms of the growth rate of new infections and fatalities, the national virus containment strategy needs to adapt fast. What we do […] Read More
