Foreign Central Banks

Global Stocks Tumble, US Futures Slide On Deutsche Bank Fears, Central Bank And Commodity Concerns

While today's biggest event for both markets and politics will be tonight's highly anticipated first presidential debate between Trump and Hillary, markets are waking up to some early turmoil in both Asia and Europe, with declines in banks and energy producers dragging down stock-markets around the world, pushing investors to once again seek the safety of government bonds and the yen.

US Futures Rebound, European Stocks Higher As Oil Rises

The summer doldrums continue with another listless overnight session, not helpd by Japan markets which are closed for holiday, as Asian stocks fell fractionally, while European stocks rebounded as oil trimmed losses after the the IEA said pent-up demand would absorb record crude output (something they have said every single month). S&P futures have wiped out almost all of yesterday's losses and were up over 0.2% in early trading.

Strong 10Y Auction Stops Through, As Foreign Central Bank Buyers Flood Right Back

Moments before today's auction printed just after 1.01pm Eastern, the When Issued was trading at 1.505%, virtually unchanged from last month's 1.504%, yet what a difference a month makes. Whereas last month the 10Y came with a high yield that tailed by 1.2 bps as Indirect bidders tumbled to the lowest since January 2015, today we have seen foreign central banks flood right back, as Indirects took down a whopping 72.2%, just shy of the all time high seen back in May when Indirects were responsible for 73.5% of the issue.

The Buyer Strike Is Over: 3Y Treasury Sells In Strong Auction As Foreign Central Banks Rush To Buy

Following a disappointing month of Treasury auctions, one which saw last month's 3Y issue see a plunge in Indirect bidders which dropped to 44.7%, August has started off strongly with the sale of $24 billion in 3 Year paper, which moments ago sold at a high yield of 0.85%, 1 bps inside the When Issued 0.86%, and with a Bid to Cover which surged from last month's 2.686 to 2.984, the highest since December.

Why Swap Spreads Are Suddenly Blowing Out And Why This Is Good For Treasuries

Over the past week, market watchers have noticed something which otherwise could be seen as a warning signal: there has been a dramatic move in swap spreads space, notably a substantial widening in recent days from what was until recently record tight - and negative - levels, coupled with a blow out in FX swaps, where the EURUSD has seen its cross-currency swap slide -3 bps today to -48 bps, the widest since July 2012. What does this mean, and what are the implications? Read on for the explanation.

Celebrating 45 Years Of Phony Money

In the pre-1971 economy, it was Main Street that produced wealth and accumulated real dollars. After 1971, it was Wall Street that controlled access to the new counterfeit money – and made sure it captured much of it. The new system gave the feds the “flexibility” they were looking for. But it completely changed the nature of our money and our economy.