Central bankers everywhere after Bernanke warning
It’s raining central bankers today which is well-timed after Federal Reserve Chairman Ben Bernanke dropped the bombshell that the Fed could take the decision to begin throttling back its money-printing programme at one of its next few policy meetings.
Fed Blog Post May Offer A Clue On Timing Of Interest Rate Hikes
When might the Fed raise interest rates again? Perhaps at the end of 2014.
Treasuries Rise as Investors Win Largest Share of TIPS Auction
Treasuries rose after investors won the largest share of 10-year inflation-indexed notes sold today at any auction since at least 2003 amid renewed debate over whether the Federal Reserve will slow monetary stimulus.
House approves bill on student loans interest rates
The Associated Press (via The Boston Globe)
House lawmakers on Thursday approved legislation that links student loan rates to the ups and downs of the financial markets in spite of a veto threat from President Barack Obama.
Moody’s Defied as Local Bond Risk Falls to 2010 Low: Muni Credit
Investor confidence in U.S. municipal debt is the highest in three years even as Moody’s Investors Service warns that local-government credit quality is set to weaken for the 18th straight quarter.
Understanding deliverable swap futures
With the Dodd-Frank clearing mandate underway, market participants are looking for more capital efficient alternatives for their OTC activity. Deliverable Swap Futures (DSF) may provide a solution for those looking to obtain interest rate swap exposure, but who want the efficiencies and margin savings of standardised Futures contracts.
Primary Dealers Saw Fed’s Confusing Strategy Reducing QE Impact
The 21 primary dealers that trade securities directly with the Federal Reserve Bank of New York, said that confusion about the central bank’s intentions for its bond-buying program is reducing the policy’s effectiveness.
Fed chairman Ben Bernanke: stimulus programme not creating ‘bubbles’
Federal Reserve chairman Ben Bernanke denied his $85bn-a-month stimulus programme was creating new financial bubbles as he updated Congress on his views on the US economic recovery on Wednesday.
U.S. 10-Year TIPS Sale May Yield Negative 0.244%, Survey Shows
The government’s $13 billion auction of 10-year inflation-indexed notes may draw a yield of negative 0.244 percent, according to the average forecast in a Bloomberg News survey of eight of the Federal Reserve’s 21 primary dealers.
ProShares Launches New High Yield Bond ETF with Built-In Interest Rate Hedge
ETF Daily News
ProShares, a premier provider of alternative exchange traded funds (ETFs), today announced the launch of ProShares High Yield—Interest Rate Hedged (BATS: HYHG), a new high yield bond ETF that uses Treasury futures to provide a built-in hedge against rising interest rates.
Exchanges, Clearing Houses & MTFs
Volatility Index for 10-Year Treasury Options Begun by CBOE, CME
The Chicago Board Options Exchange and the CME Group Inc. started an index that measures the pace of projected swings in U.S. 10-year Treasury futures.
IMF Staff Suggests Tighter Debt Rules to Improve Restructuring
The International Monetary Fund may have been too optimistic in assessing the debt sustainability of some borrowing countries and could toughen loan conditions in an effort to make debt restructuring more successful, according to the fund’s staff.
OTC clearing: Phase two of swaps clearing for Dodd-Frank is only weeks away
New global rules for OTC derivatives have been implemented in the US and are imminent in Europe that will have significant long-term implications for how hedge funds, asset managers and regional banks execute, clear, and report their swap positions.
Spanish Bonds Slide With Italy’s Amid Signs of Global Slowdown
Spanish and Italian bonds led losses among the securities of Europe’s so-called peripheral nations as China’s manufacturing and euro-area services and factory output all contracted, sapping demand for higher-yielding assets.
Kuroda Struggles With Communications Test as Bond Yields Climb
Installed as head of the Bank of Japan in March, Kuroda aims to unlock borrowing and spending by lifting inflation expectations and wages after 15 years of deflation. Market volatility partly triggered by the BOJ’s record bond-buying now threatens to sap business and consumer confidence and weaken the campaign to reflate the world’s third-biggest economy.
German 10-Year Bunds Erase Gain After U.S. Jobless Claims Data
German 10-year bunds erased an advance after a report showed fewer Americans than projected filed applications for unemployment benefits last week.