Deutsche Bank

Frontrunning: September 7

  • China agrees more U.N. actions needed against North Korea after nuclear test (Reuters)
  • Hurricane Irma kills eight on St. Martin (Reuters)
  • Trump’s Surprise Deal With Democrats Sets Up Christmas Showdown (BBG)
  • North Korea pledges 'powerful counter measures' against U.S.-backed sanctions (Reuters)
  • Why Florida Is Largely Insured by Companies You’ve Never Heard Of (WSJ)

All Eyes On Draghi: Futures Flat, Euro Surges, Dollar Slides; Yuan Breaches 6.50

S&P futures are flat, still spooked by the WSJ's report that Gary Cohn will not be the next Fed chair, while both European stocks and Asian shares gain in a quiet overnight session in which everyone is looking forward to today's main risk event: the ECB meeting. The dollar continued to weaken against all of its peers with the Yuan breaching 6.50 for the first time since May 2016.

What Share Of Bond Markets Do Central Banks Own: Deutsche Bank Answers

In light of the upcoming ECB meeting, where Mario Draghi will be asked how he plans to reconcile extending QE with declining amounts of QE-eligible bonds, Deutsche Bank has released a useful analysis breaking down what share of bond markets the biggest central banks currently own.

The Week's Key Events: All Eyes On The ECB

With the US markets closed today, market events this week will be dominated by G10 central bank meetings, among which the ECB stands out. In the US, the key economic release this week is ISM non-manufacturing on Wednesday, while several Fed officials are scheduled to speak this week.

Is A US Default Imminent: Liquidation Panic Grips T-Bills Market

While the politicians and the mainstream media are playing down any concerns about the US debt ceiling, Treasury Bill market participants are seeing chaos as the yield curve has snapped across the Sept-Oct divide with panic-buying in bills that mature ahead of the September-end (Q3-end liquidity needs), and dumping of October bills.