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US allows money market fund guarantee program to expire

By Jamie Coleman  || September 18, 2009 at 14:37 GMT
|| 2 comments || Add comment

A year ago, money market funds were hard hit by the demise of Lehman Bros. Commercial paper makes up the bulk of many funds and Lehman issued a ton of it.

The government guaranteed money funds to quell a financial panic and says it raised $1.2 bln in fees from the program. It is letting the program expire now, saying it is no longer needed.

Other tidbits crossing the wires include a 5% us GDP forecast from Barclays for the first quarter of 2010.

The weekly ECRI index is out as well, and it is at another record high, with annualized growth at 22.9% in the week of September 11.

The dollar has eased off its highs after a sharp short-covering rally saw cable fall as low as 1.6262 and EUR/USD as low as 1.4680. Traders report whispers of dollar-demand at the upcoming 15:00 GMT fixing.

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2 Responses to “US allows money market fund guarantee program to expire”

  1. Bear on September 18th, 2009 14:50 GMT

    Now Ive seen everything…..http://www.bloomberg.com/apps/news?pid=20601109&sid=a1B_ZBQfii8Q . Wonder if they have been selling cable as well

  2. Jamie Coleman on September 18th, 2009 15:15 GMT

    No bubbles in China, though.. Markets are efficient…;)



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