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One Minute Macro Update

Tyler Durden's picture





 

US:  The markets have a more bullish tone globally as further support for the Euro region comes from comments out of Japan and China.  LIBOR-OIS tops 13bp as bank CDS traded wider yesterday.  Today features a smattering of data including NFIB Small Business Optimism, but eyes will be on Europe and tomorrow's Beige Book, Import Price data, and Monthly Budget Statement for market direction.
 
Europe:  Sovereign credit a bit better this morning on renewed pledges for support from Asia.  Spain announcing they have arranged for a direct (non-auction) pre-sale of €6B in 10Y bonds.  Italy completed a sale of €7B in 1Y bills at a yield of 2.067% (+2bp from prior) and a b/c of 1.63x (v 2.00x prior).  Italy, along with Belgium, has very high sensitivity to refi risk over the upcoming year.  Prospects of a bailout situation for Portugal seem to be on the rise as their refi ability is questioned by other EMU members.

Asia:  China M2 Money Supply 19.7% YoY v 19.0%E.  December new Yuan loans 480.7B V 360.0BE (a 1 year low, but still above expectations).  Loan growth has still not moderated in China despite other tightening measures, thus the artificial demand continues and the potential for a hard landing is put off.  Japan Finance Minister Noda stating that it is appropriate for Japan to buy Irish bonds and that Japan may buy about 20% of EFSF bonds to be issued later this month.

From Brian Yelvington of Knight Capital

 


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Tue, 01/11/2011 - 08:55 | Link to Comment Orly
Orly's picture

The only Euro cross that jumped on this morning's announcement out of Japan was the EURCHF.  Any ideas as to why the EURUSD, EURAUD and others did not bounce along with the EURCHF?

Thanks...

Tue, 01/11/2011 - 09:04 | Link to Comment SAME AS IT EVER WAS
SAME AS IT EVER WAS's picture

JP morge or goldman ballsacks has big position in those. Cant be manipulated yet.

Tue, 01/11/2011 - 09:19 | Link to Comment 99er
Tue, 01/11/2011 - 09:56 | Link to Comment shushup
shushup's picture

Have never heard of "diamond top" before. Looked it up in investopedia. I don't see this formation in ES. what time frame are you looking at. Interested - please educate me. Thanks

Tue, 01/11/2011 - 10:54 | Link to Comment Orly
Orly's picture

/: 

Tue, 01/11/2011 - 09:35 | Link to Comment lucaleung
lucaleung's picture

Bad news is coming!!!

Tue, 01/11/2011 - 09:50 | Link to Comment shushup
shushup's picture

Just the other day Japan's finance minister sais that Japan was on the "Edge of  cliff". So today Japan is buying portugese bonds to help save Portugal. This is such a joke - insolvent countries buying bonds to save other insolvent countries. We're all incolvent so I guess it really doesn't matter anymore. Just keep printing money and BTFD.

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