Interest Rates Tag

Why the Fed Cut Rates by 50bps: Will it Help?

03 Mar, by Steven Vannelli, CFA in Economy, Markets, News

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...

Why Not Just Buy The US 5-Year Treasury?

19 Mar, by Knowledge Leaders Team in Economy

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)....

Central Banks Eschew Euro Holdings

09 Oct, by Knowledge Leaders Team in Uncategorized

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....

Let’s Review & Reactions to ECB’s Interest Rate (Non)Decision

03 Apr, by Knowledge Leaders Team in Uncategorized

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....

ECB Officials’ Inflation Forecasts

06 Mar, by Knowledge Leaders Team in Uncategorized

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....

Short Rates Plunge

17 Oct, by Knowledge Leaders Team in Uncategorized

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....