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One Minute Macro Update

Tyler Durden's picture




 

US:  The general market tone is more positive this AM as winter weather impacts the Northeast.  Yesterday's NFIB Small Business Optimism and other economic data did not paint a commensurately rosy picture alongside the recent ISM prints.   Today's big releases will be the Fed's Beige Book, which should provide a more granular level of data points on expansion, and the US Monthly Budget Statement.

Europe:  The Eurozone has the more immediate headline issues, and will continue to set the tone for global markets for the near future.  Rumors about a Portuguese rescue fund have now morphed into reports that the EU/EFSM/EFSF are crafting a package, reportedly worth €100B (Publico).  Portugal sold €650MM 4Y bonds with an average yield of 5.396% (+135.5bp from prior), b/c 2.6x (v 2.8x prior) as well as €599MM in 4.8% 10Y with an average yield of 6.719% (-87bp from prior), b/c 3.2x (v 2.1x prior).  The mixed to favorable auctions for Portugal might have featured ECB influence, but the broad sovereign markets have calmed a bit from yesterday following the auction.  Clouding the picture, however, are the various comments from policy makers, with Merkel stating that the EFSF is "far from exhausted" today after speculation yesterday that the facility would be increased soon.  We expect further turmoil on the political and financing fronts.

Asia:  China Securities Journal speculating that the PBOC may raise the required reserve ratio 3-5x this year.  AUD RBA's McKibbin stating that GDP hit from floods could be 1%.

From Brian Yelvington of Knight Capital

 

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Wed, 01/12/2011 - 09:10 | 869587 KTS
KTS's picture

This market is wonderful. We ignore bad news from Europe and cheer any bit good news.

Wed, 01/12/2011 - 09:22 | 869602 sheep92
sheep92's picture

macro update remains same

central bank monetize debt

prices of everything go up

rich get richer

poor riot

Wed, 01/12/2011 - 09:56 | 869653 TooBearish
TooBearish's picture

On another note Beans should go limit bid on crop report - more food riots, but no inflation....move along...

Wed, 01/12/2011 - 09:58 | 869654 rwe2late
rwe2late's picture

According to recent poll:

71% of citizens OPPOSE raising debt ceiling.

18% favor raising.

Gee, I wonder which way Congress will vote?

http://news.yahoo.com/s/nm/20110112/bs_nm/us_usa_poll_spending

 

Wed, 01/12/2011 - 10:00 | 869660 TooBearish
TooBearish's picture

TYLER pls comment on the ever widening spread between WTI and Brent Curde -6$ hasta be close to record wide....

Wed, 01/12/2011 - 10:02 | 869665 Orly
Orly's picture

In the immortal words of Billy Idol, "I got trouble with the sweet stuff.  Oh yeah..."

Wed, 01/12/2011 - 11:42 | 869981 99er
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