Borrowing Costs

Loonie Loses All 'Surprise Rate Hike' Gains As Canada's Poloz Gets Cold Feet

The Canadian Dollar is tumbling - erasing all the gains following September's surprise rate-hike - as in his first speech since the, Bank of Canada Governor Stephen Poloz warns there is no “predetermined path for interest rates” and said the central bank will proceed “cautiously” as it assess the performance of the economy from here on.

Whatever The Fed Does... It's Bullish

"But let’s be very clear about one thing... The Fed does NOT honestly believe in the strength of the recovery, that inflationary pressures are present OR that employment is as strong as stated... It’s actually quite the opposite."

Trump's China-Sanctions Madness Imperils The Dollar

"If the US wants to really continue with this sanctions game, it need also be prepared to face the reality that its not 1989, and that the world may not be willing to treat dollars and US sanctions in the way the US expects it to. The likely response will only be the latest evidence that the US 'unipolar moment' is over. "

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..."