Posts

What the Fed’s Great Unwind Means for Rates

The Beginning of the End of QE (“Quantitative Easing”). Its been well advertised the Fed will begin unwinding its $4.5 trillion-dollar balance sheet this month, initially by reinvesting a gradually smaller amount of Treasuries and allowing Mortgage-backed securities to mature without replacement in its massive portfolio. As such, October 2017 will go down in history […]

Diminishing Expectations

Last Week: The fixed income markets shrugged off last week’s political fireworks, both foreign and domestic. Interest rates rose slightly while equities posted little net change on the week despite the much-hyped “Super Thursday” – filled with a European Central Bank interest rate decision, testimony from ex-FBI director Comey and a surprise result from the […]

Janet is Smarter Than You

Last Week: Interest rates were mixed as global equities rose after the US Federal Reserve indicated it will raise rates gradually and the populist Freedom Party fared worse than expected in Dutch elections. The US Dollar seemed unimpressed, falling as Oil remained unchanged on high inventories while Gold rallied.  The US 10-year yield fell to […]

Trumping Trump

Last Week:  Interest rates surged and global equities extended gains last week, as strong global manufacturing data suggested that economic momentum continues to improve. Yields on the 10-year US Treasury and 1-month LIBOR rose markedly – to 2.49% from 2.32%, and to .8344% from .7848% respectively – as markets priced in a March 15 Fed […]

Behind the Curve?

Last Week: Interest Rates fell in concert with equity markets continuing their record setting streak. The Dow Jones Industrial Average recorded 10 record daily closing highs in a row as of last Friday, driven higher by investors optimism that US president Trump will cut taxes, reduce regulation and implement a sweeping infrastructure spending program. The […]