Warning: What you are about to read is not about Russia, the 2016 election, or the latest person to depart from the White House in a storm of tweets. It’s the Beltway story hiding in plain sight with trillions of dollars in play and an economy to commandeer.
Toronto-Dominion Bank just lifted its rate for five-year fixed mortgages by 45 bps to 5.59% as government bond yields surge. "It’s a big move, the biggest move in years."
The market is now clearly saying that Fed tightening = policy mistake: one can see that in the chart of US homebuilders which are a good lead indicator of Fed funds...
"We were stopped out a full 1% below the closing level. We are growing weary of this sort of thing, but at least we kept this to a 1 ½% loss on a single unit. At least that! ‘Tis small solace, however."
While Nasdaq futures are surging thanks to Amazon and Intel, Dow futures are 90 points lower and even the S&P in the red, as Asian shares rose and European equities were little changed.
"I think we will start to see some more of the savvier tenants of companies realize we’re starting to get to a point where they can drive some good deals for themselves..."
Confused as to why stocks are soaring... along with the dollar... and bonds... join the gang as one confused bank trading desk admits "there are no real headlines to note" behind this price action...
Anyone expecting major volatility to emerge out of today's ECB presser, will be disappointed: today's Mario Draghi press conference is expected to be a snoozer, although there are some chances for a surprise...
We said not to expect fireworks from the ECB, and at least when it comes to the press release, this has been the case, because moments ago the European Central Bank announced no changes to either any of its three rates, or the statement itself which was a repeat of last month.
While markets slowed down modestly ahead of today's key event, the ECB's monetary policy decision and Draghi press conference, there have been a series of notable moves.
