Just a very brief overnight day ahead comment before we discuss the strange settlements of the fed funds rate in greater detail. Yesterday we had a shockingly high settlement of ESTR at minus 0.511. This…
This time it’s China that’s pumpin’ the markets with sweet talk of a trade deal. After yesterdays’ trolling on Twitter by the CCP mouthpiece Hu Xijin that a trade deal is a distant prospect at…
Aaaaaand we’re back at risk-off. This morning Asian equity markets are lower while US Treasury yields fell further on increasing US-China tensions. Yesterday the US Senate unanimously passed a bill condemning human rights abuses by…
How does the Fed’s current balance sheet expansion compare to prior episodes of balance sheet expansion? Below we charted total assets. Note how the recent increases in total assets roughly matches the QE3 program, which…
The Trump giveth and the Trump taketh. The tweeter in chief gave a rather bellicose speech on trade and such yesterday, sending shivers down investors’ spines. Well, almost. Trump’s language could reveal yet another shift…
Achtung, risk-on baby! Easing trade tensions and the prospect of the US and China progressively rolling back tariffs has tanked bonds while boosting equities and other risk assets. For the week US Treasury yields are…
