Primary Market

The Golden Conspiracy

"Is there gold price manipulation going on? Absolutely. There’s no question about it. That’s not just an opinion... Now, where is the manipulation coming from? There are a number of suspects but you need look no further than China. "

What Is Causing China's Yield Curves To Invert: UBS Answers

The inverted curve reflects a contradiction between market expectations on policies and economic fundamentals. On one hand, the slowdown of economic growth may prevent the back end of the yield curve from further going up. On the other hand, financial institutions' funding costs have kept rising but the financing costs for the real economy measured by loan rates have not risen that much.

French 30-Year Bond Sale Over 4 Times Oversubscribed

In its first bond sale since the presidential election and the first big test of investor sentiment after Emmanuel Macron won the presidency, France received more than €31 billion in demand for a a €7 billion bond offering maturing in just over 30 years.

Futures Decline, Europe Slumps After German Industrial Orders Collapse

After a turbulent overnight session on Monday morning, this morning traders settle at their desks to find a relatively calmer environment, with US equity futures down 0.2% to 2,371.75, while European stocks fell for a third consecutive day, and Asian markets which closed mixed (China up, Nikkei down, MXAP up 0.2%).

S&P Futures, European Stocks Bounce As Dollar Rises Most In Two Weeks; Gold, Yen Slide

The dollar rebounded from a key support level, strengthening against all major peers, pushing S&P futures higher as European shares rose, led by basic resources and real estate, while Asian stocks fall. Gold fell from its highest level since November as demand for some haven assets ebbed while global bonds declined. Oil dipped, pressured by a stronger dollar.

ECB Assets Rise Above 36% Of Eurozone GDP; Draghi Now Owns 10.2% Of European Corporate Bonds

As global markets recoil over concerns the Trumpflation trade may be rolling over, the ECB continues to be busy providing the actual levitating power behind near record highs in stocks, and as of the latest update, the ECB's balance sheet rose above €3.72 trillion, equal to over 36% of the entire Eurozone GDP. It also means that Mario Draghi now owns over 10% of the entire European corporate bond market.

Poor Demand For Tailing 5 Year Auction As Bid To Cover Slides

In what was almost a carbon copy replica of yesterday's 2 Year Treasury auction, moments ago the Treasury sold $34 billion in 5 Year paper, with rates all comfortably positive in the repo market, which explains why the 1.988% high yield once again tailed the When Issued of 1.976%. The tail of 1.2bps was the biggest since last July.

China Housing Bubble Finally Pops: First Slowdown After 19 Months Of Acceleration

Today we got the first confirmation that the latest Chinese housing bubble has finally popped, as housing prices across the 70 cities were up 12.7% Y/Y, below the 12.9% annual growth rate in November. This was the first moderation in year-over-year housing price growth after 19 months of continued acceleration.