We just experienced the fastest bank run in history with the closure of Silicon Valley Bank. Apparently over 40% of the company’s deposits fled last Thursday and early Friday before closure. To put this is context, when Continental Illinois—at the time, the largest ever bank...
Today the Federal Open Market Committee raised the fed funds rate (upper bound) to 1% from 50bps. The most surprising element of the press conference was the Chairman dismissing that the committee is not “actively” considering a 75bps hike right now. This sent algos into...
Despite the relief rally yesterday, financial conditions have tightened significantly in the last couple weeks. This likely explains why the Fed just made an emergency 50bps cut to the fed funds rate. The graph below highlights that the two main areas of weaker financial conditions...
The collapse in yields around the developed world is startling. For fun, we wanted to see how many 5-year or longer dated government bonds are currently yielding less than the US 5-year on-the-run treasury bond (which is down 23 bps YTD itself)....
According to the most recent data available, the IMF estimates that central banks around the world shifted quite a few of their reserves out of the euro in Q2....
Earlier this week, we saw data releases for consumer prices and unemployment in Europe: This morning, Draghi announced that key rates would remain unchanged while affirming the ECB’s commitment to ’consider all instruments available’ in order to cope with ’lowflation’ in the Eurozone....
The ECB announced that interest rates would be maintained at current levels earlier today, citing staff macroeconomic projections for the euro area, which foresee annual HICP inflation at 1.0% in 2014, 1.3% in 2015, and 1.5% in 2016....
We’ve heard repeatedly from Fed officials that there is no observable reach for yield, but mutual fund flow data paint a different picture....
In reaction to the deal to avert the debt ceiling, short rates have slammed back down. The one month bill peaked at 35bps on Tuesday and is back down to 1bp today....
