Across the Curve

"Markets Are Grasping At Trump's Answer To The New Normal"

"Monetary policy is no longer what’s driving these moves. Increasingly, central banks see themselves in a defensive role, reacting rather than dictating trends. The greenback’s rally is already forcing Asian and Latin American central banks to protect their currencies. More such moves may be in the offing if dollar gains continue....  But for now, after growing weary of monetary-led slow growth, markets are grasping at Trump’s answer to the New Normal."

Indirect Bidders Tumble, Bid To Cover Lowest Since 2009 In Poor 3 Year Auction

With the election front and center on everyone's attention, today's sale of $24 billion in 3 Year paper was expected to slide under the radar as an afterthought, and perhaps that's a good thing because it was quite ugly. While the high yield of 1.034% stopped through the When Issued of 1.036%, the result of the notable selloff today across the curve as a result of early polling "data" which shows Hillary in the lead across battleground states, the internals were atrocious.

Global Bond Selloff Resumes; Stocks Rise Following Strong Chinese Data

With October, the worst month for stocks since January, now in the history books S&P futures are eager to telegraph that the streak of five consecutive will end, with a modest gain of 0.3% in overnight trading, coupled with mixed global markets as the global bond selloff returned after strong Chinese economic data prompted concerns about rising global inflation.

Global Stocks Drop On Poor Earnings, Bond "Bloodbath" Ahead Of US Q3 GDP

S&P futures and Asian stocks were little changed while European shares fell as the global bonds sell-off deepened on speculation major central banks are moving closer to reining in stimulus, while stocks retreated after disappointing results from companies including Amazon.com and AB InBev.

US Futures, Global Stocks, Metals Rise On Economic Confidence, Upbeat Earnings

European, Asian stocks and S&P futures are all up again in early trading, a repeat of the Monday session, buoyed by a generally upbeat corporate earnings season, rising economic confidence and signs of improvement in the world’s biggest economies. After Charles Evans' hawkish comments on Monday, the market is now pricing in a 71% chance of a rate increase this year, up from 68% last week.

The ECB Made A Mistake During Its Daily Bond Purchases

It turns out that in its buying frenzy, the ECB made a mistake, and according to an explanation provided by an ECB representative, the ECB had to sell a short dated Arkema bond last week it had bought some three weeks ago as it wasn’t eligible under the corporate bond buying program.

The Bank Of Japan Unleashes Chaos

"...even if we have the press release listing exactly what the BoJ was going to do, the market response to various policy mixes is such a coin-flip that it’s nearly impossible to prognosticate."