Posts Tagged ‘Portugal 2/10 curve’

Notes From Underground: Month-End, Quarter-End and Oh Yes, a New Fiscal Year in the U.S.

September 30, 2013

Tonight’s agenda brings an announcement from Australia as the RBA meets to decide its forward monetary policy. Interest rates are currently at 2.5% on the overnight cash rate (OCR). Consensus is for no change and I would agree with that for the Aussie dollar has been stable and the 2/10 yield curve is a healthy 135 basis points positive slope. Confusion reigns around the world as politics is causing uncertainty in much of the developed world’s economies. Expect the RBA Governor to note risks to global growth and that the Aussie bank will remain vigilant. Also, with a new government elected in early September the bank will want to see what types of fiscal policy will be enacted before embarking on a change in current monetary policy.

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Notes From Underground: A Dog Day of Summer

July 9, 2013

The news was sparse and the rally was easy: DOLLAR UP, SPOOS UP, TREASURIES STEADY … HO HUM. It won’t stay that way tomorrow as we will have the 10-year note auction, followed by the release of the June FOMC Minutes an hour later. At 3:10 p.m. CST, Ben Bernanke will take center stage at the National Bureau of Economic Research (NBER) and it will be about monetary policy as the FED “basks in the light” of its 100-year anniversary. The speech takes place in Cambridge, Mass. and a Q&A follows the prepared text. Markets will be on edge to see if Chairman Bernanke pulls back some of the talk on tapering or at least responds to the recent volatility of rate rises in the long-end of the market.

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