Overnight Event Summary

It's the last Friday of 2013. Here is what happened overnight.

• Japan’s inflation accelerated to the fastest pace since 2008  last
  month, bringing the rate closer to policy makers’ target while
  threatening to erode household spending power unless employers boost
  wages
• Treasury 10Y notes head for sixth straight weekly loss as yields touched above 3.00% overnight; have risen over 10bps this week amid record high closes for U.S.
  stocks, limited holiday week liquidity.
• China’s benchmark money-market rate posted its biggest weekly drop since 2011 as PBOC cash injections and fiscal fund transfers boosted supply
• PBOC has added a net 29b yuan this week by auctioning seven-day reverse repo contracts on Dec. 24, according to data compiled by Bloomberg
• Turkey’s lira tumbled to a record low as Justice Minister Bekit Bozdag  defended the government two days after his appointment by Erdogan, saying prosecutors and judges had overstepped their bounds in a widening graft probe
• Turkey’s military, which as recently as 1997 pressured the country’s first Islamist prime minister to step down, has stayed clear of the fray
• Thailand’s army chief refused to rule out the possibility of a coup even after stressing that the military can’t take sides in the deadly dispute between protesters and Prime Minister Yingluck Shinawatra’s government
• A car bomb killed former Finance Minister Mohamad Chatah in downtown Beirut today, the state-run National News Agency said, citing its correspondent
• BofAML Corporate Master Index OAS holds at YTD low 129bps; $50b priced this month. High Yield Master II OAS holds at 396bps, tightest since 2007; nearly $21b priced in Dec. CDX High Yield closed at 108.54, fourth consecutive record, from 108.48; YTD low 101.03 (June 24)
• Sovereign yields higher. Nikkei little changed, Shanghai Composite +1.4%. U.S. equity-index futures decline. WTI crude and gold little changed, copper rises

Source: Bloomberg

Comments

[Sufiy]

US Dollar Crashed Below 80.00 - Will Gold Move Higher Now?

  FOREX market is moving very fast today with US dollar move nothing less than to be called crashing down below 80.00. It stands at the 79.78 at the moment of writing with Euro at 1.3861 and Pound at 1.6544. Will Gold finally move higher now from potential Double Bottom formed this year? 10 Year Treasuries are pushing the all-important level of 3.0% now. All metals are moving higher today with Copper up 1.58%.

http://sufiy.blogspot.co.uk/2013/12/us-dollar-crashed-below-8000-will-go...

Bloomberg: London Gold Vaults Are Virtually Empty GLD, MUX, TNR.v, GDX

Bloomberg quite suddenly provides some really interesting information about the state of the gold market and ongoing manipulations around it these days. Could the reports about JPMorgan being Net Long Gold now be correct in the end?

[negative rates]

Feels like I just came off a friday, and now I am halfway recovered, only to find it's another weekend.

[JustObserving]

Why is the US dollar crashing?  Do they not know that US GDP grew at 4.1% in the third quarter?  Or that the US unemployment rate has fallen to 7%? Or that the US has TWTR, the bird that lays a golden egg everyday?

Perhaps, even the most vacuous and vapid of economists now know that all US economic data is manufactured to move US markets higher.  TWTR to $100 a share and damn the shorts.

[jonytk]

10-year Treasury yield hits highest level since 2011