Borrowing Costs

Why One Trader Thinks Calls For A Yield Rebound Are Wrong

After the U.S. 10-year yield fell to just above 2%, what’s next? It’d be easy to say it should snap back to a range of 2.3% to 2.5%, especially after it jumped at Monday’s open. But that’d be too boring. That’s the consensus view. Here are the reasons the world benchmark for borrowing costs can drop below 2%.

US Services Economy Rebounds In August "But Harvey Impact A Big Unknown"

While US Manufacturing PMI slid in August, US Services PMI rose for the 5th straight month to its highest since Nov 2015. Following last month's collapse in ISM Services, August rebounded modestly to 55.3 (but missed expectations). Of course, as Markit notes, "the strong survey data add to the expectation that the economy was picking up further momentum before hurricane Harvey hit, the impact of which is still a big unknown."

Yes, You Should Be Concerned With Consumer Debt

The mirage of consumer wealth has been a function of surging debt levels. “Wealth” is not borrowed, but “saved,” and this is a lesson that too few individuals have learned. Until the deleveraging cycle is allowed to occur, and household balance sheets return to more sustainable levels, the attainment of stronger, and more importantly, self-sustaining economic growth could be far more elusive than currently imagined.

Paul Brodsky: "Sorry, It Had To Be Said"

"Mr. Trump’s "Being There" presidency is reflecting an inconvenient truth back on a society that has, until maybe now, successfully deluded itself into believing government is functionally the glue holding society together..."

U.S. Rent Growth Flatlines As Massive Flood Of New Apartment Supply Finally Takes Its Toll

"The huge number of apartments entering the market benefits all renters...some [new developments] even offer concessions, like a month of free rent or free gym memberships. These perks aren’t limited to overly-popular markets such as NYC or San Francisco, either. Minneapolis is also seeing tons of new, top-notch apartments added to its rental market, as is Nashville and Orlando.”

S&P Futures Bounce As VIX Hammered, Europe "Euphoric"

After sliding to 3 month lows on "car cartel" concerns yesterday, European stocks have rebounded after three days of declines, while oil extended gains after Saudi export cuts, with Brent rising above $49 and WTI just shy of $47. Asian stocks fell while S&P futures rose 0.2% to 2,473, helped by a tumbling VIX which was hammered early by 3% in early Tuesday trading, down to 9.17.