San Francisco Federal Reserve Governor Daly Says Open to Pulling the Reins Back on The Economy

The San Francisco Federal Reserve Governor Mary Daly said we (The Fed) know we want to be at 2.50% by year end. She was speaking in interviews with CNBC and Fox News. She added says she’s not forecasting beyond the next couple of meetings. The Fed raised rates by a half of a percent at their May meeting. That was the first time the bank raised rates this much since May 2000 when the Fed was led by Alan Greenspan. … Continue reading “San Francisco Federal Reserve Governor Daly Says Open to Pulling the Reins Back on The Economy”

China To Allow Foreign Investors to Trade Exchange Market Bonds in Plea to Stop the Bleeding

Chinese bonds saw outflows since the yield differential shrank with US rates rising coupled with the risks associated with China’s tacit approval of Russia invasion of the Ukraine. Global funds slashed their holdings of Chinese bonds. Goldman Sachs Group Inc. trimmed its bond inflow forecast for China to $100 billion this year, from as much as $140 billion. In response China will allow foreign institutional investors to trade bonds on its smaller exchange market. The PBOC said the move would … Continue reading “China To Allow Foreign Investors to Trade Exchange Market Bonds in Plea to Stop the Bleeding”

Ukraine Credit Rating Cut Further by S&P on Protracted War and Nation Reliant on Donations

Global ratings agency S&P cut Ukraine’s credit rating further Friday, in a move that was not unexpected and follows Moody’s earlier move in the week. It also assigned a negative outlook, saying risks from the military conflict could undermine the government’s ability to meet its debt obligations. The moves flow on from S&P and Fitch swiftly cutting Ukraine on default worries. Russia’s debt was cut to junk back then. The International Monetary Fund is exploring all options to aid Ukraine … Continue reading “Ukraine Credit Rating Cut Further by S&P on Protracted War and Nation Reliant on Donations”

Strong U.S. 7-year Treasury Bond Auction Gets A+ Rating on Higher International Demand

Treasuries have moved to their best levels of the day after the US Treasury 7-Year Bond Sale garnered a A+ rating across the fixed Interest desk with strong demand from the international market. The tail was -2.4 basis points with WI level at time of the auction 2.801% and the high yield of 2.777% at the auction. Equity markets have been recovering from last week’s plunge steadily. Today’s $42 bln 7-yr note -2.4 basis point is indicative of strong demand. … Continue reading “Strong U.S. 7-year Treasury Bond Auction Gets A+ Rating on Higher International Demand”

U.S. 5-year Treasury Bond Auction with High Yield of 2.736%

The US Treasury 5-Year Bond Sale performed weaker than expected, garnering a C- rating across the Fixed Interest desk with weaker demand from the international market. The tail was -.4 basis points with WI level at time of the auction 2.732% and the high yield of 2.736% at the auction. The domestic demand was above average reflected in the directs. The bid-to-cover ratio of 2.44x was below 6-month average 2.45x, as was indirect takedown 62.9% vs 63.9% average. The desk … Continue reading “U.S. 5-year Treasury Bond Auction with High Yield of 2.736%”

U.S. 20-year Treasury Bond Auction with High Yield of 3.29% on Higher International Demand

Treasuries have moved to their best levels of the day after the US Treasury 20-Year Bond Sale garnering a B- rating across the fixed Interest desk with strong demand from the international market. The tail was -1.4 basis points with WI level at time of the auction 2.665% and the high yield of 2.651% at the auction. The long bond maintaining its leadership with equity markets selling off. Today’s $17 bln 20-yr bond -0.2 basis point indicative of strong demand. … Continue reading “U.S. 20-year Treasury Bond Auction with High Yield of 3.29% on Higher International Demand”

Solid 30-year Treasury Bond Auction with High Yield of 2.997% Follows CPI and PPI

The US Treasury 30-Year Bond Sale of $22 billion performed stronger than the recent 3 and 10-year auction after today’s PPI report. The tail was 0.9 basis points with WI level at time of the auction 3.006% and the high yield of 2.997% at the auction. The Fixed Interest desk rated it an A after yesterday’s C- on the 10-year auction. The bid-to-cover ratio of 2.30x was below average 2.31x, as was indirect takedown 65.2% vs 65.8% average. The desk … Continue reading “Solid 30-year Treasury Bond Auction with High Yield of 2.997% Follows CPI and PPI”

Weak U.S. 10-year Treasury Bond Auction Graded C Minus with High Yield of 2.943% and 1.4 Basis Point Tail 

The US Treasury 10-Year Bond Sale performed worse than expected following the hot April CPI number released earlier in the day, garnering a D+ rating across the Fixed Interest desk with strong demand from the international market. However, the tail was -1.4 basis points with WI level at time of the auction 2.929% and the high yield of 2.943% at the auction. Soft demand after yesterday’s $50 billion 3-yr note sale. The post-auction selling was heaviest in the long bond as … Continue reading “Weak U.S. 10-year Treasury Bond Auction Graded C Minus with High Yield of 2.943% and 1.4 Basis Point Tail “

Strong U.S. 3-year Treasury Bond Auction with High Yield of 2.802%

The US Treasury 3-Year Bond Sale performed much better than expected, garnering an A- rating across the Fixed Interest desk with strong demand from the international market. The tail was -.3 basis points with WI level at time of the auction 2.812% and the high yield of 1.809% at the auction. Solid demand ahead of the results of this month’s auctions of $36 billion worth of ten-year notes and $22 billion worth of thirty-year bonds on Wednesday and Thursday, respectively. … Continue reading “Strong U.S. 3-year Treasury Bond Auction with High Yield of 2.802%”

Federal Reserve Raises Rates 50 Basis Points First Time Since 2000 as Expected

The Federal Reserve raised rates by a half of a percent at their May meeting. This was the first time the bank raised rates this much since May 2000 when the Fed was led by Alan Greenspan. The Central Bank raised interest rates by 0.50% (to a target of 6.5%) back then. That was the last time the Fed would ever raise interest rates by that much in one move until day. The rate hike was priced in. The Balance … Continue reading “Federal Reserve Raises Rates 50 Basis Points First Time Since 2000 as Expected”