Author: Ryan Littlestone
1

Dudders popping up in New York

  • We're pretty close to both of the Fed's objectives
  • We may have an inflation problem if you push unemployment much lower

The last comment is almost at odds with what he's been saying recently about there not being a problem with inflation.

Maybe my thoughts on the speed of these hikes holds some water? I doubt the Fed will risk jobs growth just to fight inflation.

  • The economy can absorb the current rate path
  • Economy will be able to adjust just fine
  • Rate rise we've had in place is extraordinarily gradual
  • Fed wants to make policy a little less accommodative
  • We are seeking a soft landing by moving rates a little bit
  • 10 year yields are pretty low
  • Expects fixed income investing to be less attractive going forward since rates are rising
  • The general expectation is for longer-term market rates to rise as the Fed tightens
  • There's been a bond bull market since 1982

Now he's a bond trader.          

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Author: Ryan Littlestone
13

Bullard: We don't need to be pre-emptive on interest rates

No doubt doing the news rounds now If you ask me, the March hike smelt of trying to play catch up. I disagree on that last point. If the Fed hikes too fast the market will think there's a problem and the buck will fall, not rise.        

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Author: Mike Paterson
1

Russian central bank cuts key interest rate to 9.75% from 10.0%

News just out from Russia 24 March - Q2-Q3 could see further gradual easing - risk that inflation will miss the 4% target by the end of 2017 have slightly abated Generally upbeat assessment sees USDRUB a tad lower

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Author: Ryan Littlestone

The BOJ and MOF had tea together today

To chat about global financial markets And before everyone jumps to conclusions, it was a regular meeting between them and their Financial Services Agency where they discussed market moves.

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Author: Eamonn Sheridan
4

Here he is! BOJ's Kuroda: No reason to reduce monetary accommodation

Bank of Japan Governor Kuroda: - BOJ won't signal policy stance via daily market operation - BOJ reviewed its policy framework several times but no change to our stance of aiming to hit 2 pct inflation at earliest date possible More:

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Author: Eamonn Sheridan
1

Where's Kuroda?

Bank of Japan Governor Kuroda is to speak at a Reuters event in Tokyo Was scheduled for 1230 to 1330 Tokyo time (0330 to 0430GMT) ... suppose I gotta wait until 0330GMT ... thought we might have got a text out early  ... ah well ...

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Author: Eamonn Sheridan
8

PBOC sets USD/CNY central rate at 6.8845 (vs. yesterday at 6.8856)

In Open Market operations ... skipping these today  (which equates to around a net 30 bn drain on the day)  - Bank saying liquidity is high For the week as a whole the PBOC injected net 80bn yuan via OMOs (net 120bn yuan drain last week)

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Author: Eamonn Sheridan

BOJ Governor Kuroda to speak today at 0330 to 0430GMT

Bank of Japan Governor Kuroda to speak At a Reuters event in Tokyo From 1230 to 1330 Tokyo time (0330 to 0430GMT) --- Just gimme a sec Japan's economy recovering moderately as a trend

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Author: Eamonn Sheridan

Fed's Kaplan says we think household sector is in pretty good shape

Robert Kaplan, president of the Federal Reserve Bank of Dallas & FOMC voter in 2017 - Fiscal reforms could provide upside to growth forecast - Policies that slow work force growth would raise concerns Headlines via Bloomberg

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Author: Adam Button
3

Fed's Kashkari: Everyone on FOMC 'very interested' in balance sheet policy

Kashkari spoke with reporters - Doesn't think argument about hiking before balance sheet action is 'compelling' - Publishing a plan would give markets time to react Kashkari has been all over the media-scape this week. We've heard all this before. He did add one interesting tidbit, saying that he wouldn't be surprised if markets give back post-election gains, but he's not concerned.

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Author: Adam Button
2

SNB's Maechler: Swiss franc still 'considerably overvalued'

Maechler in Zurich - Political uncertainty dominates at present - SNB continues to look for ways to diversify FX holdings - Recovery of Swiss economy not yet broad-based, with exporters still suffering We that SBN intervention to weaken the franc totaled 67.1B francs in 2016.

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Author: Adam Button
1

Nothing on monetary policy from Yellen

Yellen doesn't comment on Fed policy or the economy She said that young people must be better prepared for the labor market.

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Author: Ryan Littlestone
1

Watch Yellen live from 12.45 GMT

A few are asking about Yellen's speech in a while so here's the link She's appearing at the Tenth Biennial Fed System Community Development Research Conference.

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Author: Ryan Littlestone
2

Eurozone banks took €233.47bn in last TLTRO

The ECB announce the results of their last long-term refinancing operations That's pretty high vs expectations. I read an email from Daiwa Capital earlier who said it might come in above €75bn but I don't think by that much. Just looking back over previous headlines, Reuters ran a poll that had respondents expecting a take up of some €125bn.

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Author: Mike Paterson
8

BOE's Broadbent says weak pound probably reflects market view post-Brexit

BOE deputy gov for monetary policy and MPC member in a scheduled speech 23 March - probably reflects market judgement that economic supply-side of UK likely to weaken after Brexit When will the bank accept that we are a nation of importers now and even our exporters have to ship in goods so a weaker pound has no real "sweet spot"

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