Fed expected to twist again
By Greg Robb, MarketWatch
WASHINGTON — The Federal Reserve is likely to extend its Operation Twist program at the end of its two-day meeting on Wednesday, a growing number of Fed watchers said over the weekend.
“We now expect the Fed to ease policy further at next week’s meeting,” Barclays Capital economist Dean Maki said in a note to clients. “We see a short-term extension of Operation Twist as the most likely outcome.”
Spain’s 10-yr. bond yields shoots past 7%
Markets’ Greece relief short-lived as Spain returns to front burner
By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) — The yield on Spain’s 10-year government bond shot to a euro-era high above 7% on Monday, knocking the wind out of stocks in the country, as markets brushed aside Greek election results to refocus on problems for the Iberian nation.
Treasuries Decline As Greek Vote Saps Demand For Refuge
Both 10-year and 30-year U.S. Government bonds rose today in response to the formation of a pro-bailout Greek government. The 30-year rose as much as .08% and the 10-year rose .02% off of 50 year lows.
G20 to press Europe for lasting fix for debt crisis
World leaders pressed Europe on Monday to do whatever it takes to combat the euro zone’s debt crisis after a victory for pro-bailout parties in a Greek vote reduced the chances of a euro breakup but failed to calm financial markets.
June home builder sentiment highest in five years: NAHB
U.S. homebuilder sentiment nudged upwards in June to its highest level in five years, the National Association of Home Builders said on Monday.
ECB stays out of government bonds for 14th week
The European Central Bank stayed out of the government bond markets last week for the 14th straight week, despite Spain’s financing costs soaring to record highs, indicating that the ECB prefers to bring down sovereign borrowing costs using tools other than bond buys.
India interest rate unchanged on inflation fears
By ERIKA KINETZ, AP Business Writer
MUMBAI, India (AP) — India’s central bank left its key interest rate unchanged Monday due to inflation concerns, thwarting hopes of a rate cut to kick-start flagging growth in Asia’s third-largest economy.
The Reserve Bank of India said the policy repo rate — at which it makes short-term loans to banks — would remain unchanged at 8.0 percent, and the cash reserve ratio — the ratio of cash which banks must keep on hand — would stay at 4.75 percent.
Natgas, Gold ETFs Rally; Spain Sells Off
By TRANG HO, INVESTOR’S BUSINESS DAILY
Natural gas and gold ETFs rallied while volatility and indebted European countries sold off the hardest Monday as the markets distilled the Greek election results.
Savers losing £18bn a year because of low interest rates
Low base rate impacting on Brits’ savings
By Kay Carson, myfinances.co.uk
UK savers are losing a whopping £18 billion a year because of the paltry returns being offered on savings accounts, ISAs and current accounts, a new report reveals. According to research by UHY Hacker Young, most accounts pay less than the current consumer prices index (CPI) inflation rate of three per cent, which means that savings pots are effectively shrinking.