BOE

With All Eyes On The ECB, Catatonic Global Markets Remain In State Of Near Paralysis

As the market's comatose trading range continues with no notable moves for nearly 40 consecutive days, there is some hope volatility may return after today's main event, the ECB's announcement due in just two hours, when Mario Draghi may surprise the market in either direction. As of today, the S&P500 has held in a band of 1.5% for 39 days, the narrowest ever for that length of time.

JPM's Head Quant Is Back With A Stark Warning: Volatility Is About To Surge; Here's Why

"Over the past 2 months the S&P 500 has been trading in a dead zone. Now this is all about to change as a number of important catalysts materialize this month, seasonals push market volatility higher, and leverage in systematic strategies and option positioning provide fuel for volatility. We expect a significant increase in realized volatility, correlations and tail risk in September and October."

Eerie Calm Continues: Futures Flat Ahead Of Apple's Latest Product Launch

The unprecedented period of low volatility, in which the S&P hasn't moved more than 1% in either direction, is now well into its 40th day and the muted overnight session has done nothing to put this streak in jeopardy with S&P futures once again hugging the flatline ahead of the widely expected 3:30pm ramp. European stocks were likewise little changed while Asia was fractionally higher depite a modest dip in the Nikkei.

The High Yield Bond Market Has Never Been This Decoupled From Reality

...the revelation of a default event exposes the vast gap between 'real' asset values (upon liquidation or bankruptcy) and the artificially supported 'prices' seen in bond markets. In the 30 year life of the so-called junk bond market, the chasm between reality and central-planner-created markets has never been wider.

Stunning Chart Shows That Central Bank Liquidity Is Now Driving All Asset Prices

If there is a reason why traders walk into their office every day in a state of zombified daze, no longer able to trade various asset classes based on fundamental data or incremental news flow, there is a simple reason for that: global central bank liquidity injections have never been greater, and as of this moment, have surpassed all previous post-financial crisis central bank intervention.

"All Eyes On Central Banks" In September, But "No Reason To Smile"

September will be quite a busy month for investors since there are around 30 major central banks meetings scheduled. Since the Bank of England’s last policy announcement, the total monthly amount in global official quantitative easing has reached almost $200 billion, which corresponds, for the purpose of comparison, to Portugal’s annual GDP in 2015. Long-rumoured and oft-discussed, QE infinity is now a reality.

The Blessing Of Cash (And Why Central Bankers Hate It So Much)

Cash is an unambiguously a blessing to productive workers, savers, and entrepreneurs who wish to protect their hard earned money from the crazed theories and swindling schemes promoted by statists like Rogoff and the central bankers he advises.

In "Victory For Eurosceptics" British PM Will Begin Brexit Negotiations Without Parliamentary Vote

In what the Telegraph dubs a victory for Eurosceptics, the conservative newspaper reported overnight that Britain's new Prime Minister, Theresa May, will not hold a parliamentary vote on Brexit before formally triggering Britain's withdrawal from the European Union. "Her decision will come as a blow to Remain campaigners, who had been hoping to use Parliament to delay or halt Brexit entirely."

Why Today's 2 Year Auction Is Important

"the most important tell on sentiment will be the U.S. Treasury auctions. Especially as they involve the two-year and belly. Yesterday morphed from “uh, oh they’re hawkish” to “I knew I should’ve bought the damn dip.” Buy every dip when facing the possibility of a third big NFP in a row? Sure, if you believe in the status quo"

Gilts Spike After Cover Ratio In Today's 15Y+ POMO Tumbles, BOE Buys All Bonds At Premium

While last week the UK bond market breathed a sigh of relief when the BOE found more than enough willing sellers into its longest-maturity, 15Y+ repurchase, or POMO, operation, following the uncovered operation two weeks ago, today concerns have returned anew when moments ago the BOE reported that its GBP1.170 billion repurchase operation was covered "only" 1.54x, down nearly by half from last week's 2.93x, and suggesting that supply of longer-dated gilts may once again be getting scarce.

US Futures Fall, European Stocks Rise As Stronger Dollar Sends Oil Lower

European stocks rose and US S&P futures fell after the dollar strengthened following the latest hawkish comments from Fed vice-chair Stanley Fischer signalled that a 2016 rate hike is still being considered and again boosted speculation that US rates will rise this year. The rising dollar pressured commodities and notably oil, which dropped 2% breaking a 7 days stretch of increases; emerging markets retreated. 

Two More Banks Start Charging Select Clients For Holding Cash

Last weekend, when we reported that Germany's Raiffeisenbank Gmund am Tegernsee - a community bank in southern Germany - said it would start charging retail clients a fee of 0.4% on deposits of more than €100,000 we said that "now that a German banks has finally breached the retail depositor NIRP barrier, expect many more banks to follow." Not even a week later, not one but two large banks have done just that.