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BlackRock Inc. increased its overweight call on inflation-linked debt on the view that price pressures will remain well above the Federal Reserve’s 2% target.
Financial Stress Is on the Rise to Levels Similar to the Ltcm Collapse & Dot Com Bubble Bust: ChartApr 12, 2023 - 07:25:21 PDT
Rising financial stress tends to precede further tightening of credit conditions and then a ultimately recession.
Gold prices are on the move after the US CPI data has finally eased off and printed the reading of 5% against the expectations of 5.1%. Traders have taken this news as an indicator that the Fed is going to ease off from its rate hike cycle. However, the Fed minutes, which are due later in the day, are highly important, as the Fed may argue that core inflation is still sticky and they need to do more.
Gold accelerated over 1% on Wednesday as signs of cooling inflation added fodder to bets for a pause in U.S. interest rate hikes and dragged down the dollar and yields ahead of U.S. Federal Reserve's latest meeting minutes.
Real yields should provide an even greater tailwind for gold through the rest of 2023, supported by a weaker dollar and by buying from reserve managers.
The recent collapse of several banks in the US has resulted in a significant drop in US bank stocks and the upcoming quarterly earnings season will either make or break them.
Core CPI Re-Accelerates, Headline Slows, Real Wages Decline For 24th Straight MonthApr 12, 2023 - 06:01:39 PDT
Despite NYFRB's recent survey showing inflation expectations resurging, expectations were for a notable drop in headline CPI (but a rise in core CPI) and that is what we got, with headline CPI +0.1% MoM (+5.0% YoY vs 5.1% exp, and down from 6.0% YoY prior)...
The Federal Reserve is on a path to shrink the size of its massive stock of cash and bonds for several more years, and will likely also face several more years of negative net income as well, a report from the New York Fed said Tuesday.
Minneapolis Federal Reserve Bank President Neel Kashkari on Tuesday said the Fed's interest-rate hikes and a possible pullback in lending after two bank failures last month could trigger a recession, but allowing inflation to stay high would be even worse for the labor market.
U.S. Treasury Secretary Janet Yellen will call on Wednesday for the World Bank to undertake additional reforms this year to expand its ability to help developing countries meet global challenges such as climate change. Yellen is hosting talks with global finance officials on Wednesday to discuss ways to continue evolving the World Bank and other multilateral...
Just when you thought the banking crisis was over — you'd better brace for an onslaught of big drops in bank profit. Hopefully you aren't caught flat-footed.
Strategists Slash U.S. Yield View Again Despite Fed’s Inflation Focus: Reuters PollApr 12, 2023 - 05:50:34 PDT
U.S. Treasury yields will trade sharply lower a year from now than was forecast just a few weeks ago, according to fixed-income strategists polled by Reuters, who also expected the U.S. yield curve to steepen further. Yields on U.S. 2-year Treasury notes have plunged over 100 basis points following the failure of some regional U.S. banks last month.
US Treasury Secretary Janet Yellen shrugged off recent banking spasms to declare the economy better off than six months ago, saying she didn’t believe the banking turmoil had restricted the availability of credit in the US.
Warren Buffett said more US banks are likely to fail, but depositors should be confident they won’t lose any of their funds.
Housing Is So Unaffordable Banks Are Losing Money for Each Mortgage They Finance for the First TimeApr 12, 2023 - 05:44:05 PDT
New data shows mortgage financiers lost an average of $301 a home loan last year, the first time negative profits were recorded.
Apr 12, 2023 - 05:40:30 PDT
Mortgage applications increased 5.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending April 7, 2023.
The Bank of Japan will continue monetary easing to achieve its 2% inflation target accompanied by wage hikes in a sustainable and stable manner, new deputy governor Shinichi Uchida said on Wednesday. The comment followed Ueda's view earlier that it was appropriate to maintain the central bank's ultra-loose monetary policy for now as inflation has yet to sustainably mee...
Currency traders may be looking forward to a far more relaxed time than other markets counterparts around Wednesday’s US inflation data amid expectations that any upside in price pressures would fail to sustain gains in the dollar.
Traders are piling into China’s government bonds, driving benchmark yields to the lowest since November on bets that more monetary easing may be on the way.
The euro area faces a risk of entrenched inflation that the European Central Bank is determined to combat by keeping interest rates high for a sustained period, Governing Council member Francois Villeroy de Galhau said.