U.S. Bonds Cheapest Since ’90 Versus Bunds Counter Buffett Pity
The longest decline in Treasuries this year has left U.S. government debt the cheapest since March 2011 when measured by real yields and the best relative value compared with German bunds in more than two decades. After inflation, 10-year U.S. notes yielded 0.91 percent last week, or 1.77 percentage points more than real yields on U.K. gilts, the widest spread in 25 months. Versus Germany, the securities are the least costly in 23 years when adjusted for the recent record-low interest rates around the world that distorted the normal relationship, according to FTN Financial. Federal Reserve Chairman
China ‘hard-landing’ trades revisited
A string of banks trimming their Chinese growth forecasts last week does not have alarm bells sounding yet. But as well as reviewing China’s misfiring economy, it is probably time to revisit some “China hard-landing” trades. So far this year, the principal China story has been one of growth and policy disappointments, leading to a steady de-rating of Chinese equities. A key debate has been the extent to which we are witnessing a cyclical downturn or a harder-to-fix structural one. The former used to hold no fear — the expectation being that Beijing had the financial resources in reserve to backstop
QE Halt Would Be 'Too Violent' for Market: Fed's Fisher
The Federal Reserve should go from "wild turkey" monetary policy to "cold turkey" overnight, Dallas Fed President Richard Fisher told CNBC on Monday, saying that when the dial back is the key because stopping would be "too violent for the market." Fed Chairman Ben Bernanke's principle concern is the efficacy of the central bank's $85 billion a month bond-buying program, Fisher said in a "Squawk Box" interview.
No Love for Precious Metals – Silver Gets Slammed
First it was gold, and now it's silver. The metal fell victim to heavy selling on Monday, dragging gold down with it, on U.S. dollar strength and as investors turned more cautious on precious metals as an alternate investment, said experts. "We feel silver weakness has been a liquidation trade as investors grow increasingly wary of precious metals and traders are forced to close positions to meet margin calls elsewhere," said Stan Shamu, strategist at trading firm IG Markets.
Hedge Fund Owner Gets Subpoena to Testify
Steven A. Cohen has received a subpoena to testify before a grand jury in the government's insider trading investigation into his hedge fund, SAC Capital Advisors, a development that signals a newly aggressive phase in the multiyear inquiry, according to lawyers and executives briefed on the case. Issued last week, the grand jury subpoena came as part of a broader round of requests from criminal authorities. Other SAC executives were also named in the subpoenas, the lawyers and executives said, and the fund itself received requests for information about its activities.
USD/JPY retreats on comments from Amari
The USD/JPY has held the spotlight overnight, as the move towards 103.00 was slowed after comments made by Japan’s Economy Minister Akira Amari. He stated concern over the recent depreciation of the Japanese currency
End of Gold’s Dead Cat Bounce
May 20, 2013 – Gold (daily chart) has approached an end to its “dead cat bounce” that brought the precious metal up to an early May high of 1488, which was also right at the 61.8% Fibonacci retracement of the prior plunge
EU law key to ending 'too big to fail' banks: BoE's Tucker
A European Union law up for a vote on Monday will only fully shield taxpayers from bailing out troubled banks if there is a global framework as well, a top UK regulator said on Monday
Gulf wealth funds raising private equity investments: study
Sovereign wealth funds in the Gulf Arab region are raising their allocations to private equity investments at a faster rate than other types of investment, U.S. fund manager Invesco says in a new study
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