After an unprecedented explosion in fiscal largesse… Led by USA… And the greatest easing of monetary policy ever… Which, for The Fed, looks like this… Source: Bloomberg Who would be surprised that we saw stocks dead-cat-bounce this week… Source: Bloomberg Exactly on cue with the 1930s analog… Source: Bloomberg In fact, after last week’s worst performance since Lehman (2008), this week’s gains were the greatest stock […]
Bond
25 posts
There is a reason why the Fed took the unprecedented step to announce it would begin buying corporate bonds this week: according to Bank of America, which is looking at the latest EPFR fund flow data, March 20 was the “bond capitulation day” when a record $34.6BN in redemption from bond funds took place. This, together with the record outflows observed in the past two weeks […]
The View hosts bonded over their coronavirus self-isolation consumption of Funyuns and Cheez Whiz canned cheese in a light moment during Thursday’s episode. After Whoopi Goldberg asked her co-hosts whether there’s anything they’ve had trouble adjusting to during coronavirus self-isolation, Sunny Hostin replied, “I did eat almost an entire bag of Funyuns yesterday.” “Why are you eating Funyuns, Sunny?” asked Goldberg. “I love Funyuns, and I […]
Just last Friday we reported that the number of distressed debt in the US – roughly defined as bonds with a spread of over 10% – had soared, doubling in just two weeks to a remarkable $500 billion. Well, double it again. According to Bloomberg’s James Crombie, there is now about $1 trillion of debt trading at distressed levels after this month’s credit rout, “and it’s […]
The Fed unveiled its ultimate bazooka today – unlimited buying of pretty much any- and every-thing until this all calms down. The problem is – it didn’t reassure investors as they’ve had 10 years of knowing that whatever The Fed ‘creates’ is simply money-printed delusion that does not reflect any real economic progress. Fed announces unlimited QE and sets up several new lending programs pic.twitter.com/PXjedWTBcx — […]
Over the weekend, we reported that virtually all of Wall Street was praying for nothing short of divine intervention from the Fed, but would be content with the announcement of corporate bond buying, such as Bank of America… … and Deutsche Bank. On Monday morning, that’s precisely what they got when the Fed announced that it would indeed start purchasing corporate bonds. And in a way, […]
One week ago, Bank of America’s credit strategists issues a dire assessment of the current state of the bond market: the Treasury market was no longer functioning properly. Fast forward to today, when Citi issued a similar warning about the overall state of the corporate bond market, noting that “order book has collapsed to 10% of historical average and trade impact cost has risen to more […]
Amid relentless calls for a massive fiscal stimulus, the market apparently forgot that the stimulus will have to be funded somehow, and that moment came moments ago when Bloomberg reported that the White House is revisiting an idea to issue ultra-long bonds, including 50-year and 25-year bonds, as the source of funding. According to the report Trump advisors are trying to come up with the lowest […]
US futures traded limit up overnight, plunge back to the lows of the day, soared back above overnight highs, dumped again, ripped again, then slumped… 1000s of Dow points in the swings on the back of various political and monetary headlines of ever-increasing bailouts (and warnings)… that is malarkey! So, some (brief, perhaps) exuberance in stocks. BUT… Despite The Fed’s CPFF, banking system liquidity worsened… Source: […]
Authored by Bloomberg macro commentator, Garfield Reynolds The Federal Reserve just moved us toward a world where central banks hold so much of government bond markets that nothing else matters. That’s a world where yields will stay lower forever not just for longer. The Fed pledged to add $700 billion of bond buying after cutting rates back to the zero bound, and market reaction that followed […]
Co-star of Daniel Craig in ‘Quantum of Solace,’ Ukrainian-born actress Olga Kurylenko has announced she tested positive for the Covid-19 and has been in self-isolation at her home with symptoms that include fever and fatigue. The Hollywood actress broke the news about her being coronavirus-positive in an Instagram post on Sunday. “Locked up at home after having tested positive for Coronavirus. I’ve actually been ill for […]
Via SchiffGold.com, Stocks rallied on ‘Turnaround Tuesday’ on the promise of government stimulus. The dollar and the bond market also turned around [ZH: but a lack of clarity since has seen stocks fade but bond yields remain higher]. In his podcast, Peter Schiff said the bond market was the one to watch because it’s possible that the promise of more stimulus could have finally pricked the […]
Shortly after President Trump began his address to the nation, enacting a full travel ban from European nations for the next 30 days, the markets started to get upset. Dow futures are down over 550 points… Japan’s Nikkei 225 is down over 350 points… 10Y Treasury yields are down 11bps… It appears Trump did not offer enough detail and immediacy for the funds the market is […]
Back in December, the BIS laid out a stunning, and heretofore unknown assessment of the factors leading into the September repocalypse: not only was the overnight repo surge to 10% a function of supply (or lack thereof), with banks – primarily JPMorgan – pulling liquidity from the repo market causing a panic scramble for any incremental dollar (end eventually forcing the Fed to open up its […]
“The bond market is rallying because The Fed has reacted the seizure in the corporate bond market – which is not getting enough attention.” That was the sentence that sparked a chin hitting the table moment for anyone watching DoubleLine CEO’s Jeff Gundlach being interviewed on CNBC today. Until now, amid all this equity market carnage, various talking heads – who clearly are not ‘in’ the […]
10Y Treasury yields are collapsing to new record lows as Asian markets open – down to a stunning 82bps… Source: Bloomberg 2Y TSY yields are back below 50bps… Source: Bloomberg For the first time since 2016… Source: Bloomberg China’s 10Y Yields just fell to a record low… Source: Bloomberg And Dow futures are down over 200 points, accelerating lower as no apparent imminent intervention from The […]
Stocks Surge To Erase Yesterday’s Losses But Bond Yields Tumble …some might say Biden trumps Powell… The Dow, S&P, and Small Caps have erased all of yesterday’s losses… But bond yields continue to tumble… So maybe the market’s demands for more rate cuts trumps Biden’s gains? Tyler Durden Wed, 03/04/2020 – 13:34 Source
The release date of James Bond film No Time to Die has been delayed from April to November due to the coronavirus outbreak. Film studios MGM and Universal, along with the Bond series producers Michael G. Wilson and Barbara Broccoli released a statement saying, “after careful consideration and thorough evaluation of the global theatrical marketplace, the release of ‘No Time To Die’ will be postponed until […]
NY Gov Cuomo summed things up best today “no need for undue fear…” which we suggest is the same theme that President Trump will proclaim at 6pmET. TBH it all reminds us of ‘The Naked Gun’… And sure enough, the overnight exuberance in futures and opening BTFD efforts, failed dramatically as more US cases were reported in Nassau County and NY Gov Cuomo spoke…Dow futs rallied […]
WHO, CDC, and HSS all dropped the honesty hammer today: WHO SAYS REST OF WORLD IS NOT YET READY FOR VIRUS SPREAD CDC OFFICIAL SAYS CORONAVIRUS PANDEMIC IS LIKELY AZAR SAYS U.S. MAY NEED UP TO 300M MASKS FOR HEALTHCARE WORKERS And just like that ‘complacency’ gone… From “Extreme Greed” to “Extreme Fear” in a week… So, rates, FX, and commodities were right after all… Source: […]
Re-Turnaround Tuesday: Stocks & Bond Yields Are Plunging Again US equity markets just took out yesterday’s lows and Treasury yields are also extending to fresh lows… So much for Turnaround-Tuesday! And yields are plunging… Somebody do something! Tyler Durden Tue, 02/25/2020 – 10:30 Source
Though international financial press has tended to pay little attention to distressed Lebanon, this week was different as the country’s dollar-denominated bonds maturing next month were savaged in their worst day on record. “A bond yield soars to more than 1,000%? It just happened with Lebanon,” Bloomberg reported. It’s next maturing Eurobond, $1.2 billion of notes due on March 9, plunged 17 cents on the dollar Wednesday to […]
While the catalyst for this sudden move is unclear, the fact is a notable regime shift is underway today in factors as the long-momo-short-value trade is reversing fast as Treasury yields tumble. And that is weighing down the overall market… With 30Y Yields back at their lowest since Sept 2019… As Gold surges… Is reality finally setting in? Source
The Bank of Korea (BOK) is looking at developing a new blockchain system for the Korean bond market, one of the largest such markets in Asia. Korean financial news site Yonhap Infomax confirmed Tuesday the Korean central bank was looking for a company that can build a new blockchain system that would improve record-keeping for the market. Bond transactions could be recorded on the blockchain and […]